IMPACT REPORT 2018

RSPO
IMPACT REPORT2018

Cover Photo Credit: RSPO & Jonathan Perugia

CONTENTS

02

03

06

FOREWORDRSPO IN BRIEF

DRIVING CHANGE

16

36

38

ROUNDTABLE ON
SUSTAINABLE PALM OIL

IMPACTS 2018

IMPACT FORPEOPLE

Photo Credit: Unicef, Fauzan, 2018

Photo Credits: RSPO & Jonathan Perugia

44

59

75

IMPACT ON
OUR PLANETIMPACT ON
PROSPERITYBASE DATA &
NOTES

79

81

GLOSSARY

REFERENCESFOREWORD

Impact Report
Presented by Darrel Webber
RSPO Chief Executive Officer

Dear members and stakeholders,
Welcome to the fifth annual Impact Report for the Roundtable on
Sustainable Palm Oil.
It has been an important year for RSPO and its stakeholders with the Principles and Criteria (P&C) review
being a focal part of our work. This latest review sought to align the P&C with the RSPO Theory of Change(ToC) and to increase accessibility by making the P&C more relevant and practical. During this process, somekey areas were identified for improvement. These included addressing deforestation, peatland protection andconservation, human rights, labour rights and exploitation, as well as strong support to restructure the P&C
to enhance its readability and applicability by streamlining topic areas and eliminating repetitive criteria.
Furthermore, the review process pinpointed the need to simplify the certification approach for smallholders.
This resulted in the current development of a new standard for smallholders, including exploring a phased,
continuous improvement approach for compliance over a period of time. We trust that the multi-stakeholder
structure of the review process will be reflected in the new P&C, which are due to be submitted for ratificationby the General Assembly (GA) of RSPO in November 2018. We look forward to sharing more on the RSPO
Smallholder Standard in our next impact update.
On a separate note, I am proud to announce that we have witnessed steady and encouraging growth forsustainable palm oil and RSPO membership across various markets since the last reporting period. Somenoteworthy mentions from the findings of this report include a 15% growth in overall RSPO membership, a
23% increase in sales of physical Certified Sustainable Palm Oil (CSPO), and an 83% increase in total certified
area cultivated by RSPO Independent Smallholders under group certification. Certified area in Latin America
has increased by 15%, and the area in Africa has nearly doubled since 30 June 2017. Moreover, there has been
a 39% increase in High Conservation Value (HCV) area identified and managed by RSPO certified members.
I’d like to take this opportunity to congratulate all RSPO members and stakeholders for their contribution
and commitment towards achieving responsible agricultural, social, and environmental practices to address
the global mission of making sustainable palm oil the norm. While I’m extremely proud of the progress andincremental impact we’ve collectively made thus far, I’m eager to see what we can achieve over the course of
the next few years, as we foster a concerted and focused effort to achieving market transformation.
Thank you,
Datuk Darrel Webber

02

RSPO IMPACT REPORT 2018

VISION & GOALS“RSPO willtransform
markets
to makesustainablepalm oilthe norm“

RSPO IN BRIEF

The Roundtable on Sustainable Palm Oil (RSPO) is a multi-stakeholder, not-for-profit organisation, which
focuses on advancing the production, procurement, finance and use of sustainable palm oil products. We
develop and implement global standards for sustainable palm oil through open dialogue and cooperation
with every stakeholder in the supply chain. We also work to verify, assure and periodically review thesestandards.

Supporting resilient and healthy
landscapes and communities
Protecting and restoring resources while
ensuring that people have the means to provide
for themselves and advocate for their rights.

Green and inclusive growth
Advancing sustainable palm oil as a driver for
economic growth and development at local,
regional and national levels.
Ensuring that natural assets continue to provide
the resources and environmental services on
which wellbeing relies, and that benefits accrue
to all involved.

ABOUT THIS REPORT
We published the first RSPO Impact Report in 2014
to document the environmental and social impactsof our organisation and the RSPO standards. We
have since published an Impact Report every two
years, as well as an Impact Update every other year,
to ensure our stakeholders stay fully informed about
our progress.
In November 2017, we launched a Theory of Change(ToC) to better articulate, manage and measureprogress towards our vision. The ToC is our roadmap
towards sustainable palm oil, providing insights
into our standard’s effectiveness and its long-term
impact. All RSPO impacts will now be reported toreflect our performance against the strategies
defined in the ToC. This 2018 Impact Report will

also assess our contributions to the United Nations
Sustainable Development Goals (SDGs) and include
updates on progress aligned with the communication
campaign themes of Inclusivity, Accountability and
Education.
This report covers the RSPO’s progress and activities
from 1 July 2017 to 30 June 2018. The data reflects thereporting timeframe or has been taken as at 30 June
2018, unless otherwise stated. We have incorporated
information about plans or activities scheduled forthe remainder of 2018 and 2019 where these have asignificant bearing on the topics covered.
All RSPO Impact Reports and Impact Updates canbe accessed at: rspo.org/key-documents/impactreports

RSPO IMPACT REPORT 2018

03

3.2

millionhectares certified

1

04

2.4

millionhectares production
area certified

263,177
hectares High
Conservation Value(HCV) area set aside
within certified area

3,920

13.6

6.2

•
•
•

million tonnesof Certified
Sustainable
Palm Oil (CSPO)

million tonnes CSPO
sold, 52% of total CSPO
supply1

1,693 Ordinary
2,129 Associate
98 Affiliate

CSPO sales figures are based on full calendar year data (1 January 2017 – 31 December 2017).

RSPO IMPACT REPORT 2018

55,099
certifiedschemed andindependent
smallholders

rspo.org/about/impacts

Certified Area
as at
30 June 2018
1 - 1,000 ha
1,000 - 5,000 ha
5,000 - 1,000,000 ha
1,000,000 - 1,500,000 ha> 1,500,000 ha

GlobalDistribution of
Certified Mills
354 mills certified

19%
of global palm oil
produced is CSPORSPO IMPACT REPORT 201805

DRIVING
CHANGERSPO Today
Our Vision for the Future
Achieving Our Vision:
RSPO’s Roadmap for Sustainable
Palm Oil““We see a future where it is standardpractice to realise benefits for all palm oilstakeholders by improving conservation,
reducing poverty, supporting sustainable
livelihoods, valuing community participation,and ensuring fair labour practices and theeconomic viability of businesses.

Photo Credit: RSPO & Jonathan Perugia

DRIVING CHANGE

Photo Credit: RSPO & Jonathan Perugia

RSPO TODAY
By bringing stakeholders together to seek solutions
to the challenges of the palm oil sector, RSPO hascreated a platform to transform how palm oil is
produced, traded and sold. Today, approximately 19%of all palm oil produced globally is certified under
the RSPO Standard. Meanwhile our membershipbase has more than doubled in the last five years.
Despite these significant achievements, we continue
to face a range of challenges. Stakeholders areraising issues that require stronger leadership, suchas deforestation and human rights. The current
system is also viewed as insufficiently adaptable toindependent smallholders, or to countries outside
Malaysia and Indonesia. There is, moreover, aneed for increased government engagement in key
producing countries, as well as a better balance
between supply and market incentives, to encourage
the uptake of Certified Sustainable Palm Oil (CSPO).
This is particularly the case in Asian consumer
markets.
In addition, the quality of certification is being
questioned and new verification methods are
required to supplement the current certification
model. A number of competing solutions haveemerged as a result, including alternativecertifications, and both buyers and governments are
increasingly challenging the relevance of RSPO.

08

RSPO IMPACT REPORT 2018

“Business as usual” is no longer a viableapproach if RSPO is to remain relevant. For
real transformation to take place, our market
needs to become more inclusive, as well as
more competitive, innovative, transparent andresilient. To drive these changes, the RSPO andits stakeholders must in turn increase readinessto proactively respond to emerging challenges as
the business landscape continually evolves.

OUR VISION FOR THE FUTURE
We see a future where it is standard practice
to realise benefits for all palm oil stakeholders
by improving conservation, reducing poverty,
supporting sustainable livelihoods, valuing
community participation, and ensuring fairlabour practices and the economic viability ofbusinesses.
To ensure our continued progress towards thisvision, we began developing a Theory of Change(ToC) in 2016. This process entailed extensive
engagement with all our stakeholder groups
as we worked together to build consensus
around the impacts RSPO seeks to attainand the pathways by which we can mobilise
our resources in order to reach these priority
outcomes. Launched in 2017, the RSPO ToC
is now our definitive roadmap to making
sustainable palm oil the norm.

DRIVING CHANGERSPO envisions a future where:

Wildlife corridors
are flourishing, as
are the landscapesand ecosystems inpalm oil producing
areas.

Communities andcompanies work
together to determine
shared value from palm
oil production.

Palm oil workers havetheir rights respected
and make a fair living.

Photo Credit: RSPO

Smallholders areproducing palm oil in asustainable way and arebeing supported bya viable economic modelthat provides them withsecurity and livelihoods.

Governments havesmart policies thatprovide appropriate
regulations, supported
by enforcement thatcreates a level playing
field, enabling themarket to adopt goodpractices.

Companies recognise
their obligations ascorporate citizens, as wellas the business case forsustainable production.

Photo Credits: RSPO & Jonathan Perugia

RSPO IMPACT REPORT 201809

DRIVING CHANGE

10RSPO IMPACT REPORT 2018

DRIVING CHANGERSPO IMPACT REPORT 201811

DRIVING CHANGE

ACHIEVING OUR VISION:
RSPO’S ROADMAP FOR SUSTAINABLE
PALM OIL
The ToC defines our desired impacts and the pathways – orcausal chains – we have set up to achieve them. Impacts are thelong-term effects that our interventions will have on our planet,people, markets and systems. Causal chains describe how
RSPO and its partners will drive change by linking strategies
to expected outputs and outcomes to deliver on our ultimate
vision of making sustainable palm oil the norm.
The ToC infographic uses the logic of cause and effect to explain
how our actions will drive change. It starts with our Guiding
Principles and Roles, and then outlines each step along thecausal chain as we move through three key phases – mobilise,
act and transform.

Seven strategies have been identified to achieve the RSPO
vision. These form the basis of the causal chains and aim todeliver key outputs, including increased adoption of the RSPO
standards, greater transparency and inclusivity in the RSPO
system, increased market uptake of sustainable palm oil and amore enabling environment.
Over time, these outputs lead to intermediate outcomes andlong-term outcomes, which are anticipated to improve qualityof life for oil palm growers, create a more prosperous palm oil
industry, and enable us to better conserve our planet and its
resources. As more actors are involved, the long-term outcomesare multiplied and supported by efforts leading to the ultimate
impacts and goals.
A more in-depth guide to the RSPO ToC, as well as individual
explanations of each of the seven identified causal chains, canbe accessed at rspo.org/about/impacts/theory-of-change.

GUIDING PRINCIPLESLONG-TERMOUTCOMESIMPACTSROLESINTERMEDIATEOUTCOMESGOALSSTRATEGIESOUTPUTSVISIONSUSTAINABLE PALMOIL IS THE NORM

How We Monitor and Evaluate Impact
We continuously monitor and evaluate the impact of our activities to assess how effectively they contribute to our vision. Our
Monitoring and Evaluation (M&E) System provides evidence and insights to validate or negate the assumptions we work under inorder to ensure the continuing relevance and development of the RSPO Standard.
We use a three-level structure for collecting and assessing data:

In-depth independent andcommissioned studies
Monitoring data from asample of certified units

LEVEL 3

LEVEL 2

Data from all certified units, New
Planting Procedure and AnnualCommunication of Progress

Data collection instruments based on: ISEAL Code of Good
Practice for Impacts Assessment

12

RSPO IMPACT REPORT 2018

LEVEL 1

DRIVING CHANGE

We have already collected a large amount of data under
Level 1, and we continue to make significant progress
on Levels 2 and 3. For Level 3 data, a list of completed
research is available through our Research Library, including
RSPO-commissioned and independent studies on the impacts
of RSPO certification.
Read more about our research activities on page 33.
The M&E System and the RSPO ToC
We started using the RSPO ToC as a guiding framework for
our M&E System in early 2018. The ToC and our M&E System
together inform our strategies, drive innovation and ensure
continuous improvement through learning and adaptive
management. A set of core M&E indicators based on the ToC
has been developed to evaluate our progress, from direct
outputs, outcomes and impacts on critical pathways, as wellas to develop key evaluation questions. The indicators combine
additional reference points, including the International Socialand Environmental Accreditation and Labelling (ISEAL) Alliancecommon core indicators, and the UN Sustainable Development
Goals.

Contributing to the United Nations
Sustainable Development Goals
At the UN Sustainable Development Summit on 25 September
2015, leaders from 193 countries adopted 17 new Sustainable
Development Goals (SDGs) to end poverty, protect the planet
and ensure prosperity for all as part of a new sustainable
development agenda. Launched by the United Nations, eachof the SDGs incorporates ambitious targets to be achieved by2030.
We identified areas where RSPO actions may already be
addressing the SDGs in our 2016 Impact Report, as well as
opportunities to further integrate them into RSPO standards
and activities. As part of our ToC development process, we havesince worked to ensure our objectives, vision and roadmap arealigned with the SDGs, and we will continue to calibrate our
M&E indicators to relevant SDG targets.

Our Contribution to the Sustainable Development Goals
On a general level, our work supports seven key SDGs:

RSPO supports theSDGs

We will highlight the link between these SDGs and our impacts, activities and contributions in the following sections of this report.
More information about the UN Sustainable Development goals can be found at: sustainabledevelopment.un.org/sdgs.

RSPO IMPACT REPORT 201813

Working Towards Change
Influence of context: regulation, enforcement, market dynamics, etc.

OUR STRATEGIESInnovation instandards &benchmarks

Credible certification,verification & grievance

OUR APPROACH

Working with stakeholders and other systems todefine the principles, criteria and practices thatmake sustainable palm oil production happen.
Read more about the RSPO P&C review on page 23.

Developing a framework of assurance that builds
stakeholder confidence and trust that sustainability
requirements are met.
Read more about RSPO’s Certification System and assurance
programme and activities on pages 21–25.

Participatory
approach forsmallholders

Ensuring the inclusion of more smallholders in the
RSPO system to produce sustainably and benefitingfrom sustainable palm oil production and trade.
Read more about RSPO’s work with smallholders and the RSPO
Smallholder Strategy on pages 59–64.

Catalysing a platform for collective impact.
Jurisdictional
approaches forcollective impact

Demand generation,commitments & uptake

Matching supply& demandRead more about our work to advance the jurisdictional approachto certification on pages 30–31.

Furthering commitments and uptake of sustainablepalm oil to incentivise sustainable production.
Read more about our market outreach activities on
pages 65–74.

Increasing and diversifying the supply base andmarket to ensure the long-term security of demand
and market access for growers.
Read more about how we provide support to growers to advancethe production of CSPO on pages 26–35.

Engagementof supporting
sectorCreating an enabling environment through beinga catalyst, advocate, and partner for policies
and incentives, investment, regulation, andenforcement.
Read more about how we engage with market actors, government
bodies and other key stakeholders to support progress on national
commitments and uptake of CSPO on pages 66–74.

Influence of RSPO
Note: All seven Strategies work together to deliver results and therefore there is no direct linear relationship between Approach, Outputs, Outcomes and Impacts.

14

RSPO IMPACT REPORT 2018

OUTPUTS(LEVEL 1)

OUTCOMES & IMPACTS(LEVELS 2 AND 3)

Increased membership

Reduced pollution& GHG
emissions

Increased commitments,
market & uptake
Demand and uptake of CSPO continued
to grow between 2016 and 2017, withoverall sales increasing by 9% to 6,155,983
tonnes as at December 2017. Read moreon page 65.

Smallholder participation
3,491 independent smallholders are
certified as at 30 June 2018, covering
21,237 hectares of certified area.
Read more about the progress made on
smallholder certification on page 61.

Effective standards &implementation systems•

28 certification bodies are accredited to
conduct RSPO certification audits as at
30 June 2018. Read more on page 24.

•

Average number of days for resolving
complaints cases has decreased by 63%
from 2016 to 2017. Read more about ourprogress on handling complaints on
pages 41–42.

Implemented BMPs
As at 30 June 2018, 3,176,852 hectares are
RSPO certified across 16 different countries.
There are 354 RSPO P&C certificate holders,
representing an annual certified production
volume of 13,619,600 tonnes of CSPO and3,135,973 tonnes of CSPK. Read moreon pages 26–27.

Platform & dialogues
Find out more about the progress of country
commitments towards market uptake of CSPO
on page 66.

••

Between 2015 and 2017, 34%of the total proposed area fordevelopment has been identified
for conservation set-asides
resulting in projected net emission
reduction of about 2 million tCO2e.
Read more on page 53.
There has been a steady increasein the cumulative annual CO2
emissions avoided from theconservation of peatlands up to a
total of 515,000 tCO2e/year in 2018.
Read more on page 51.

Biodiversity protected••

As at 30 June 2018, 263,177 hectaresof HCV area has been identified and ismanaged by RSPO certified members,
an increase of 39% since the lastreporting period. Read more on
page 44.
Between 2000 and 2015, total lossof intact and logged forest in areas
allocated for oil palm that wereactive and non-certified concessions
was 1,748,123 ha, which was 25
times more than RSPO-certified
concessions. Read more on page 45.

Communities &companies in harmony
As at 30 June 2018, the total Final
Conservation Liability area identified
through the RSPO Remediation andCompensation Procedure (RaCP) is117,400 hectares. Read more on page 49.

Sustainable & resilientbusinesses

RSPO will transform markets to make sustainable palm oil the norm

As at June 2018, we had 3,920 registeredmembers located in 91 countries – anincrease of 15% since 2017. Read more about
our membership on pages 19–20.

VISION

Certification is profitable for different
types of Indonesian palm oil
smallholders. Read more on page 64.

Inclusive access to benefits

The RSPO Smallholder Support
Fund (RSSF) has provided financial
support for 32 smallholder projects
in 12 countries since November 2013,
benefitting nearly 26,000 individual
smallholders. Read more on page 63.

RSPO IMPACT REPORT 2018

15

ROUNDTABLE ON
SUSTAINABLE
PALM OILRSPO Governance &Management
RSPO Membership in 2018
RSPO Certification
Systems & Standards
RSPO Certification in 2018
Jurisdictional Approach to
Certification
Research on RSPO Impacts
Building Capacity & Learning
Platforms
Linking Back to Our Roadmap

Our members represent the seven key sectorsof the industry: oil palm growers, palm oilprocessors and traders, consumer goods
manufacturers, retailers, banks and investors,
environmental and nature conservation NGOs,
and social and development NGOs.

““

Today, we are a global organisation withmembers in 91 countries.

Photo Credit: RSPO & Jonathan Perugia

ROUNDTABLE ON
SUSTAINABLE PALM OIL

Photo Credit: RSPORSPO was legally established on 8 April 2004
under Article 60 of the Swiss Civil Code. Startingout as an informal collaboration between several
multinational companies and the WWF, the RSPO
was set up in response to an urgent global call forsustainable production in the industry.

Today, we are a global organisation with membersin 91 countries. Our members represent the sevenkey sectors of the industry: oil palm growers,
palm oil processors and traders, consumer goods
manufacturers, retailers, banks and investors,
environmental and nature conservation nongovernmental organisations (NGOs), and social anddevelopment NGOs.

RSPO GOVERNANCE & MANAGEMENT
ORDINARY MEMBERS

AFFILIATE MEMBERS

SUPPLY CHAIN ASSOCIATES

GENERAL ASSEMBLY

BOARD OF GOVERNORSRSPO SECRETARIAT

STANDING COMMITTEES
Trade & Traceability, Communications & Claims, Standards & Certification, Finance

WORKING GROUPSTASK FORCESRSPO is governed by its Statutes, Code of Conduct andMembership Rules, which set out the requirements
and expectations for the organisation and its
membership. The Code requires every ordinary andassociate member to submit Annual Communicationof Progress (ACOP), as well as a time-bound plan,
which together enable us to evaluate progress on
membership commitments.
The General Assembly (GA) is an annual general
meeting of members held every November to proposeand deliberate resolutions on the governance andposition of the RSPO. The GA provides transparency
on the administrative and financial activities of the
RSPO, and sets out the working agenda for the
coming year.

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RSPO IMPACT REPORT 2018

RSPO is managed by a Board of Governors (BoG)
comprised of 16 members (with alternate members),
distributed over the RSPO’s seven official member
sectors. The BoG is supported by four Standing
Committees that oversee Standards & Certification,
Trade & Traceability, Communications & Claims, andFinance. Additional support is designated to, andprovided by, Working Groups and Task Forces that
focus on developing solutions to specific challenges.
Decisions taken by the BoG, Working Groups andTask Forces are consensus-based.
Based in Kuala Lumpur, Malaysia, and led by the
Chief Executive Officer (CEO), the RSPO Secretariat
is responsible for the RSPO’s day-to-day operations.

ROUNDTABLE ON SUSTAINABLE PALM OILRSPO Annual Roundtables & Conferences
Held every November in an Asian city, the RSPO Annual Roundtable Conference on Sustainable Palm Oil (RT) brings
together around 1,000 representatives from across the global palm oil industry. This flagship event provides opportunities
for members and stakeholders to receive the latest RSPO updates and debate issues relating to sustainable palm oil
production and market trends. In 2017, we held our 15th Annual Roundtable Conference (RT15) in conjunction with our 14th
General Assembly (GA14) in Bali, Indonesia. RT15 welcomed participants from 40 different countries and focused on thethemes of inclusivity, accountability, and commitment to transforming the market together.
RSPO also hosts a yearly European Roundtable (EURT) and regular conferences in Latin America and Africa. The 6th RSPOEURT was held in June 2018 in Paris and received over 400 delegates.

RSPO MEMBERSHIP IN 2018
As at 30 June 2018, we have 3,920 members in 91 countries, a 15% increase since the start of
the reporting period. Around 65% (521) of new members are supply chain associate members,
and 34% (276) are ordinary members. Palm oil buying sectors and markets continue to leadthe field in terms of memberships and growth. Retailers, Consumer Goods Manufacturers andPalm Oil Processors and/or Traders within ordinary membership have collectively grown byaround 11%.
Membership among growers has increased by 3% since 2017,bringing the total number of growers to 175 out of 1,693 ordinary
members. Although there were 20 new grower memberships
registered during the reporting period, there were also nine
grower members that consolidated their registrations with theirparent companies in the same timeframe, which partly explains
the limited growth. Overall, 67% of RSPO growers are locatedin Asia, while Latin America and Africa are more diversified interms of countries with RSPO members.

Germany has overtaken the UK in terms of total RSPO
memberships. The United States (US), an important and fastgrowing emerging market for sustainable palm oil, is now insecond place following a 38% increase in the reporting period.
Spain also saw a 21% increase and has now replaced Indonesia
in the top 10 countries by membership.

3,920

43%

members in 91 countries,
15% (498) more than in 2017

are ordinary members and 57% are affiliate
or supply chain associate members

20%

38%

increase in supply chain associate members
since the last reporting period in 2017

membership increase in the US and
21% increase in Spain since 201782%of ordinary members are manufacturers
and processors and/or traders

175of the 1,693 ordinary members are growers,
representing a 3% increase in grower
membership since 2017

RSPO IMPACT REPORT 2018

19

ROUNDTABLE ON SUSTAINABLE PALM OIL

ORDINARY MEMBERSHIP(1,693 as at 30 June 2018)

14

12
73

Oil Palm Growers
Palm Oil Processors and/or Traders
Consumer Goods Manufacturers
Retailers

577

804

Banks and Investors
Environmental or Nature Conservation
Organisations (Non-Governmental
Organisations)Social or Development Organisations

175(Non-Governmental Organisations)38

TOP 10 COUNTRIES OF RSPO MEMBERSHIPRSPO IMPACT REPORT 2018

he
r

1,444

Ot

ia

132

Au
st
ra
l

ai

n

138

Sp

ay

si

a

139

al

iu
m
lg

Fr
an
ce

149

Be

161

Ita

200

M

et

he
r

la

nd
s

228

N

d

Ki

ng
d

St
at
es
d

ite
Un

Un
ite

rm
Ge

20

432

om

446

an
y

451

ly

(Total membership: 3,920 as at 30 June 2018)

ROUNDTABLE ON SUSTAINABLE PALM OILRSPO CERTIFICATION SYSTEMS & STANDARDSRSPO provides a global certification system for certified sustainable palm oil (CSPO) and palm kernel (CSPK). The system is madeup of three key elements: certification standards, accreditation requirements and certification process requirements.

Certification standards
Set out the requirements thatshall be met by an organisation
and against which certificationassessments are made.

RSPO Principles & Criteria,
supported by:Accreditation
requirements, ensuring
that:

i. Audit checklist forassessing complianceii. National Interpretations(NI)• The organisationthat undertakes
the accreditation of
Certification Bodies(the Accreditation
Body) is competentand produces credible,
consistent results• RSPO Management
System Requirements& Guidance for Group
Certification of FFB
Production• The Certification
Bodies that undertakecertification arecompetent and produce
credible, consistent
results

Certification process
requirements
Set out the processof establishing if therequirements of thestandards have beenmet (carried out by a
Certification Body).
• RSPO Certification
Systems for Principles& Criteria• RSPO Supply Chain
Certification Systems• RSPO Supply
Chain Certification
Requirements• RSPO-RED & RSPO NEXTTo ensure the credibility of the certification system and all
associated sustainability claims, all RSPO members that takelegal ownership of, produce or handle RSPO-certified sustainable
oil palm products must be certified through the following means:••

Palm oil growers are certified through strict verification ofcompliance with RSPO Principles & Criteria for Sustainable
Palm Oil Production. Growers are assessed for certification
every five years. Certified growers are also annuallyassessed through surveillance audits for continued
compliance.
Individual growers wishing to certify their Fresh Fruit
Bunches (FFB) against the RSPO Principles & Criteria(P&C) can do so under the Group Certification scheme,
which enables independent small farmers to be certified
together under a single certificate.

•

All other organisations in the supply chain that use
RSPO certified sustainable oil palm products areaudited against the RSPO Supply Chain Certification
Requirements to prevent the overselling and mixing ofpalm oil with conventional (or non-sustainable) palm
products.

In addition, third-party verification and certification must be
carried out by an independent and accredited certification
body. Accreditation bodies and certification bodies must
follow the certification process requirements set out in the
RSPO Certification Systems for Principles & Criteria and RSPO
Supply Chain Certification Systems documents.

RSPO IMPACT REPORT 2018

21

ROUNDTABLE ON SUSTAINABLE PALM OILRSPO P&C: Eight Principles Governing Certification
The RSPO P&C sits at the heart of the RSPO certification process. The P&C are a set of environmental and social requirements
designed to guide palm oil growers and millers as they implement sustainable production practices.
There are eight core principles set out in the current (2013) version:Commitment to transparency

Environmental responsibility andconservation of natural resources andbiodiversity

Compliance with applicable laws andregulations

Responsible consideration of employees, andof individuals and communities affected bygrowers and millsCommitment to long-term economic andfinancial viability

Responsible development of newplantings

Use of appropriate best practices bygrowers and millers

Commitment to continuous improvementin key areas of activity

National Interpretations
The P&C are generic and include key international laws and conventions. As countries may differ in their laws for the same
criteria, the P&C are further adapted for use by some countries through National Interpretations (NIs). There are currently
12 countries with NIs. Two of these interpretations, for Nigeria and Ecuador, were approved during the reporting period, and an NI
for Côte D’Ivoire is being finalised at the time of reporting.

Supply Chain Certification Standard
The RSPO Supply Chain Certification Standard (SCCS) covers requirements related to the control of RSPO certified oil palm productsin the supply chain, including flows of RSPO certified palm oil products and associated claims.
Oil palm products can be traded through any of the four supply chain models approved by RSPO:

Identity Preserved (IP)Mass Balance (MB)Segregated (SG)RSPO Credits / Book andClaimCompanies in the supply chain that have been successfully audited against the RSPO SCCS can claim the use of RSPO CSPO
products and use the RSPO Trademark on packaging.

22

RSPO IMPACT REPORT 2018

ROUNDTABLE ON SUSTAINABLE PALM OILRSPO P&C Review
To comply with the membership requirements of the ISEAL Alliance, and to ensure the continued effectiveness and relevance of the
RSPO standards, we review our certification standard every five years. This inclusive process incorporates input from stakeholder
groups, auditing results and feedback from our monitoring and evaluation work. A central focus of the RSPO in 2017 and 2018 has
been on conducting the review of the current P&C 2013.

RSPO P&C Review Milestones
March 2017

P&C Review
Task Forceformed todeliberate thecurrent P&C
2013

November 201817 full P&C
consultation
workshops and
32 face-to-faceevents have been
held across 2017–2018 to gather
stakeholder andexpert inputs forthe revised P&C

Six meetings
arranged for
the Task Forcethroughout theprocess

Two 60-day public
consultations were
held in 2017 and2018 to collectfeedback on therevised P&C
drafts. The latest
consultation took
place in
June–August 2018

P&C 2018
targeted for
adoption at the
15th RSPO General
Assembly

RSPO P&C Review Highlights as at 30 June 2018
At the fifth Task Force meeting in May 2018, work by sub-groups was collated and consensus was achieved on several items:••••

Restructuring the P&C to align with the new RSPO ToC, improve the flow and order, and provide more clarity on standard
implementation
Enhanced prescriptiveness for labour requirements on key issues, including forced labour, freedom of association, health andsafety, gender and child labour
A proposal for a new No Deforestation requirement
A separate standard exclusively applicable to independent smallholders

More information on the current P&C Review can be found in the RSPO Impact Update 2017 (pages 32–37) and at www.rspo.org/
principles-and-criteria-review.

RSPO Certification Systems Review
In 2015, Resolution 6h was passed at the 12th General Assembly committing RSPO to developing mandatory guidelines to improve
the quality, credibility and oversight of assessments. We have since conducted a review of the RSPO Certification Systems for the
P&C and RSPO SCCS. The new Certification Systems documents came into effect in July 2017, with a 12-month transition period
for members and certification bodies to achieve compliance.
RSPO’s designated accreditation body, Accreditation Services International (ASI), is currently monitoring the compliance of RSPO
accredited certification bodies against the 2017 Certification Systems documents. Seven certification bodies have been audited
following the release of the documents, and audits will continue throughout 2018.

RSPO IMPACT REPORT 2018

23

ROUNDTABLE ON SUSTAINABLE PALM OIL

Approvals and Suspensions as at 30 June 201828 certification bodies are accredited to
conduct RSPO certification audits as at
30 June 2018:•••

Approvals

3 for P&C certification audits
13 for SCCS audits
11 for both P&C and SCCS audits

Two certification bodies were approved
during the reporting period in Colombia
and Malaysia.

RSPO Assurance Task ForceThe RSPO Assurance Task Force was established in 2016 to leadthe implementation and enhancement of the RSPO assurance
system.2 The Task Force is assigned to identify all necessary
steps to ensure robust assessment, verification and certification
against the RSPO Standard, and to clarify the role of each party,
notably certification bodies, auditors, assessors and growers.
During the reporting period, the Task Force facilitated seventraining sessions for certification bodies, as well as workshops
and seminars in Indonesia and Malaysia, engaging nearly
200 participants in total. Workshops focused on increasing
understanding on critical topics related to RSPO audits,
including P&C and SCCS certification, smallholder certification,
High Conservation Value (HCV) and New Planting Procedure(NPP) assessments, social auditing procedures, and training on
the latest Certification Systems document requirements.

Investigation & Monitoring Unit
Answering the need for a robust, effective, and harmonised
investigation and monitoring mechanism, the Investigation& Monitoring Unit (IMU) was established in July 2018 as a
critical control point within the RSPO Assurance and Grievancesystems. The IMU has oversight and ensures coordination of the
RSPO investigation and monitoring efforts via a newly developed
risk management system. If breaches to RSPO’s key documents
are determined on the basis of monitoring and/or investigation
findings, appropriate corrective actions are recommended
using existing platforms within the organisational framework.
In addition to Investigation and Risk Management & Monitoring
desks, the IMU also consists of Geographic Information Systems(GIS) expertise.

2

24

The assurance system covers assessments, such as High Conservation
Value (HCV) assessments; verification, including for the New Planting
Procedure (NPP); audits conducted by Certification Bodies; and oversight,
including ASI accreditation.

RSPO IMPACT REPORT 2018

Suspensions

No certification bodies weresuspended between July 2017 andJune 2018.
Two suspensions took place inthe first half of 2017, and bothcertification bodies have been
reinstated following corrective
actions.

RSPO Integrity Project
Initiated in 2016, the RSPO Integrity Project is acollaboration between RSPO and ASI that aims tostrengthen the implementation of RSPO requirements,
identify gaps and weaknesses in the RSPO standards
and provide a platform for alignment between RSPO, ASI
and certification bodies.
Some of the project’s key components include:•
The introduction of compliance assessments to
the RSPO accreditation programme•
The development of a central lead auditor registry•
Data evaluations of RSPO P&C audit reports
In March 2017, ASI released a summary report on
10 compliance assessments of certification bodies
conducted by the organisation between 2015 and 2016.
The report concluded that compliance assessments are
extremely useful for determining performance quality,
and that substantial training will be needed to drive
improvements among the certification bodies assessed.
Up until the close of 2017, ASI continued to carry out anadditional eight compliance assessments. A final report,
including the findings of these additional assessments,
is expected to be available in 2019.
ASI has also carried out a comparative analysis of 485
RSPO P&C audit reports to understand the patterns in
all non-conformities raised by accredited RSPO P&C
certification bodies throughout 2015 and 2016. One of
the key findings that emerged showed that there is an
uneven distribution of non-conformities identified acrossthe eight RSPO Principles (2013 version) – 90% of nonconformities were linked with Principles 2, 4, 5 and 6.
The results have served to inform the RSPO P&C review
process, as well as to strengthen RSPO’s general risk
and performance-based assurance activities.
Access ASI’s final report on the comparative
analysis
atwww.accreditation-services.com/s/post/
a1J1H000002JeDSUA0/p0135

ROUNDTABLE ON SUSTAINABLE PALM OIL

Perspectives: Both ENDS

Both ENDS is an independent NGO that works towards a sustainable future
for the planet. Its core activities focus on building connections to strengthen
civil society organisations – including environmental and social justicegroups – in developing countries. Both ENDS joined RSPO in 2005, and Paul
Wolvekamp has been on the RSPO Board of Governors since 2013. Paulalso facilitates the RSPO Assurance Task Force. Below he expands on the
progress of the Task Force and Resolution 6h.

Paul Wolvekamp,
Both ENDS
Resolution 6h proposed amongst others the developmentof a minimum standard for HCV and Free, Prior andInformed Consent (FPIC) assessments in NPPs, as well asa transparent and robust system for monitoring assessment
quality. It called for monitoring of RSPO members’ adherence
to required procedures and reporting all members that omit
submitting NPP notifications before clearing lands to theComplaints Panel. It also called for improvements in RSPO’s
assurance programme and stricter monitoring of certification
bodies/auditors that conduct RSPO audits. While it has takensome time to engage all the various stakeholders involved,
important progress has been made in these areas.
RSPO has worked closely with HCVRN (HCV Resource
Network) to address the quality issues related to HCV
assessments. The current system requires the utilisationof the HCV Assessor Licensing scheme, and this has proved
very helpful in preventing flawed HCV assessments and NPPs
resting on such assessments being approved or endorsed.
However, for NPP assessments, we still face an IT challenge
in making all documentation and stakeholder feedback
publicly available. The publication of such documents is
critical for maintaining RSPO’s transparency and ability toundertake timely corrective actions, and we are currently
working on a solution.
The monitoring of labour remains a complex issue. One major
challenge is to strengthen auditing systems to detect noncompliances on RSPO labour requirements. One opportunity
identified through dialogue with ASI and RSPO accredited
certification bodies is to provide auditors with specific trainingthat better prepares them to navigate the social aspectsof their work. Moving forward, we will also work to ensurethat women are better represented on auditing teams andthat these teams are properly equipped to interview female
workers.
Overall, the review of the RSPO Certification System
requirements was an effective process. One challenge
here was to balance the number of days needed for acertification body to conduct a good quality audit and theaudit costs incurred by grower members. This balance wasachieved through open and multi-stakeholder dialogue.
While this remains guidance rather than a requirement, it ispositive to see that RSPO acknowledges that auditors face
unforeseeable complexities in the field and require sufficient
time to conduct thorough evaluations.
Compliance audits are another key ingredient in the mixof measures right now. ASI has conducted two rounds ofcompliance audits. The first of these prompted certification
bodies to be more stringent in their own performance, andthis resulted in significant improvements signalled during thesecond set of compliance audits – as well as some valuablelessons.
The Task Force is also addressing perceived conflicts ofinterest where certificate holders contract certification
bodies. Having commissioned research in this area, we arenow exploring ways to create a more neutral relationshipbetween these parties. This relationship must of course bebased on mutual trust, but certification bodies’ first loyalty
should be to the RSPO system.
Both ENDS expects that RSPO will continue to focus on
integrity and push for improvements. Certification systems
are useful for detecting compliance issues, but progress
ultimately depends on the commitment of growers to
implement the requirements properly. In this context,
Resolution 6h demonstrates that RSPO should remain an
effective platform for shared learning and capacity building,where growers are fully involved and in dialogue with otherkey stakeholders.
The big challenge for RSPO now – which is also a big
opportunity – is to continue reaching out to growers
and other downstream players and local stakeholders –communities, labourers, civil society organisations (CSOs)
and local governments – to make sure they understandthat this is where the road to a more equitable and moresustainable palm oil industry starts: with growers being able
to implement and adhere to the RSPO Standard.

RSPO IMPACT REPORT 2018

25

ROUNDTABLE ON SUSTAINABLE PALM OILRSPO CERTIFICATION IN 2018
As at 30 June 2018, plantations covering 3.2 million hectares across 16 countries are RSPO certified. In total, there are 354 RSPOP&C certificate holders, representing an annual certified production volume of 13,619,600 tonnes of CSPO and 3,135,973 tonnesof CSPK. The total production area cultivated by RSPO members covers 2.4 million hectares. This represents a 3% decrease since
30 June 2017. There was a corresponding 2% decrease in the total global RSPO certified area.

Certified &non-certified
concessions
Non-certified

TOTAL CERTIFIED AREA: 3,176,852 hectares as at 30 June 2018

CertifiedNote: This map only shows the global distribution of RSPO certified concessions. The concession areas/boundaries are not to scale and have been exaggerated forvisual display purposes.

Indonesia and Malaysia are the largest oil palm producing nations and account for the majority share of RSPO certified area
(2,511,080 hectares or 79% of the total certified area). Indonesia’s certified hectarage has decreased by 10% over the courseof the reporting period due to the suspension and delayed renewal of member licences in PalmTrace. Malaysia and the rest of
Asia-Pacific individually saw a 1% expansion. More positively, certified area in Latin America has increased by 15%, and certified
area in Africa has nearly doubled, with a 94% increase since 30 June 2017.

Certified Area by Region(Total: 3,176,852 ha as at 30 June 2018)
1,719,606
1,555,847

Total Certified Area 2017
Total Certified Area 2018

945,619 955,233

285,687

327,124
230,361 231,591
55,156

Indonesia

Malaysia

Latin America

Rest of AsiaPacificNote to data: All figures are inclusive of certified area for smallholders certified under group certification.

26

RSPO IMPACT REPORT 2018

107,057

AfricaROUNDTABLE ON SUSTAINABLE PALM OIL

Annual Certified Production Volume of CSPO and CSPK (MT)(2014–2018)
13,619,600

12,623,139

11,710,919

11,125,902

CSPK

10,850,196

2,556,432

2014

2,883,200

2015

2,444,103

2016

CSPO

2,683,835

2017

3,135,973

2018

Note to data: All figures are inclusive of annual production volumes of CSPO and CSPK of all smallholders certified under group certification.
Data taken as at 30 June for each respective year.

RSPO NEXTRSPO NEXT is an additional and voluntary set of environmental and social criteriathat expands on the current RSPO P&C to cover additional categories. The initiative
engages with RSPO member companies that have met and exceeded the current
P&C requirements, offers credible third-party verification for these actions, andprovides a platform for recognising leadership in implementing best practices.
Two palm oil growers have achieved full RSPO NEXT certification since theinitiative’s launch in 2015, Colombia-based DAABON Group and Malaysian grower
United Plantations. Together these represent a total of 27,955 certified hectares.
Just one year later, DAABON completed the world’s first sale of RSPO NEXT credits,
representing 2,000 tonnes of certified volume.

No Deforestation

No FireNo Planting
on PeatReduction of GHGs

Respect for
Human Rights

Transparency

The RSPO NEXT requirements can be accessed at: www.rspo.org/certification/rspo-next.

RSPO IMPACT REPORT 2018

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ROUNDTABLE ON SUSTAINABLE PALM OIL

Celebrating Ten Years in Latin America
With the fastest growth in terms of newly certified hectares—
it’s an exciting time for Latin American RSPO members and
CSPO consumers.
RSPO held its 7th Latin American RSPO Conference in Cali,
Colombia, in June 2018. The conference was jointly hosted
with the Colombian palm oil trade association FEDEPALMA,
and received participants from 20 countries across Latin
America, Asia, Europe and North America. The three-day
event gave participants an opportunity to reflect on 10
years of RSPO presence in the region, as well as on themain challenges and next steps towards achieving one
common goal: making Latin America a global leader in thesustainable production of palm oil.
There has been limited growth in certified area in Latin
America over the course of the reporting period. However,when considering our progress over a wider timeframe,
we see that CSPO has advanced significantly since RSPO
entered the region. Latin America is approaching themilestone of producing one million tonnes of CSPO, with thevolume of certified palm oil having tripled over the last three
years. In addition, the number of RSPO certified mills andsupply chain facilities continues to increase.3 This indicatesa growing interest among regional growers in adopting RSPO’s
sustainability standards.

To harness this momentum, RSPO hosted an international
media tour in Ecuador and Colombia in 2018 for journalists
from the United States and Europe, a joint initiative between
the RSPO Secretariat in North America and Latin America.
In Ecuador, the tour included a meeting with the first groupof independent smallholders in Latin America to become
certified, ASOCOFOR in La Concordia. Journalists were alsoable to learn more about Ecuador’s initiative to pursue ajurisdictional approach to certification in a meeting with
Ecuador’s Minister of Agriculture, Ruben Flores.
In Bogotá, Colombia, the group held interviews withrepresentatives of the Ministry of the Environment to
explore the country’s zero-deforestation policy, which wasannounced as part of the TFA (Tropical Forest Alliance) 2020
initiative. Journalists also toured a mill operated by DAABONGroup in Santa Marta and attended an HCV training session
for smallholders.
In addition, the group visited FEDEPALMA to learn more
about how the association is working towards transforming
both the Colombian market and consumer perceptions inorder to drive domestic demand for CSPO.

Photo Credit: RSPO & Christian Perez

328

From January 2015 to January 2018, certified sustainable palm oil volume has increased from 250,000 tonnes to around 780,000 tonnes. Meanwhile, the number
of RSPO certified mills has grown from 5 to 28 mills.

RSPO IMPACT REPORT 2018

ROUNDTABLE ON SUSTAINABLE PALM OIL

Perspectives: DAABON GroupDAABON Group is a family owned and managed company located in Santa
Marta, Colombia. Established in 1914 with just a few hectares of banana
plantations in the Magdalena region, the company is today one of theworld’s leading suppliers of sustainable tropical crops, including avocado,
banana, coffee, palm oil and cocoa. DAABON has been a member of RSPO
since 2007 and has maintained 100% RSPO certification since 2010. Below,
Felipe Guerrero, the Group’s Corporate Director of Sustainability, provides
us with DAABON’s perspective on the advancement of CSPO in the region, as
well as the evolving role of RSPO in Latin America.
Felipe Guerrero, Corporate
Director of Sustainability,
DAABON GroupThe last decade has seen substantial changes in thereception and growth of CSPO production in Latin America.
We see this trend reflected in the volume of CSPO produced,
and also in the growing awareness about RSPO in the region.
Producers now understand not only the risks associatedwith unsustainable palm oil production, but also how RSPOcan help to deliver transparent, robust communications
to customers and stakeholders about sustainability in the
sector.
Companies are also becoming less concerned about what
they previously saw as a costly and challenging process. They
are realising that RSPO does more than just set requirements– it also provides a framework for improving management
practices. In so doing, it allows for smaller and medium-sizedfamily run businesses, which are common in the industryin Latin America, to elevate themselves to international
standards and stand out through the implementation of thesebest practices. This is one of the most significant impacts
that the RSPO has for local companies that are exposing
themselves to sustainability, and to the world.
Much of this progress can be attributed to RSPO’s presencein the region, as well as the dynamic relationship forged
between the RSPO Secretariat in Latin America and the US.
This strong and approachable team has made significant
strides in increasing awareness about the standard andits benefits. The market for CSPO in the US is growing,
and companies are increasingly interested in sourcing thebest quality sustainable palm oil. This is in turn having amarked impact on the level of awareness about RSPO andsustainability among palm oil producers in the region.

We believe Colombia will continue to be a front-runner for
CSPO production. RSPO’s work is highly relevant in thecurrent political context because it could lead to increased
government presence, which is also the aim of the current
peace process. We are very grateful to FEDEPALMA, an
important partner in helping to secure the position of palm
oil from Colombia and the wider region. At DAABON, we
continue supporting progress where we can. For example,
one of our reasons for taking on RSPO NEXT certification
has been to demonstrate that it is possible for companies inColombia to raise the bar and do more than what is alreadybeing done.
One of the key challenges we foresee relates to how No
Deforestation is defined and addressed in the region. Morealignment is needed at a governmental level with global
definitions of No Deforestation established by international
experts. We also see Ecuador’s work towards a jurisdictional
approach as an important but challenging process. The
jurisdictional approach is a well thought out concept, but will
require significant adaptation to succeed in the local contexts
found in Latin America. Nevertheless, countries in the region
will be looking to Ecuador’s commitment as a model to be
replicated.
On a broader level, RSPO has succeeded both as a certification
scheme and as a platform for bringing stakeholders together
to discuss the key challenges related to sustainable palm
oil production. From our perspective, RSPO has the future
potential to be viewed as the ‘embassy’ for sustainable palmoil, as government-level engagement becomes increasingly
important for moving the agenda forward. RSPO has alreadyachieved some progress in the political space, and we hope to
see it strengthen this role and further build on the influence it
already has on a global scale.

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ROUNDTABLE ON SUSTAINABLE PALM OIL

JURISDICTIONAL APPROACH TO
CERTIFICATIONIn an effort to scale up sustainable palm oil production,and in line with the strategies laid out in our ToC, RSPO isembarking on a jurisdictional approach to certification. Thisapproach involves the certification of palm oil production ata jurisdictional level and aims to ensure the participation of
all relevant stakeholders so that the benefits of sustainablepalm oil production can be shared.
By involving all stakeholders – from local governments, to millowners, to small-scale farmers – the jurisdictional approachstreamlines certification processes through strengthened
collaborative actions that target challenges beyond thecapacity of single producers or even the entire supply chain.
The most important and promising element of the approachso far has been the opportunity to drive dialogue and toconverge common goals across business, government,
and community stakeholders. Companies increasingly
see the potential of the jurisdictional approach to simplify
traceability and certification, and to lower the cost of meeting

their commitments through efficiencies of scale. Local
stakeholders are also welcoming the approach as it promotes
the sharing of local expertise and enables regional society totake ownership of sustainability strategies rather than them
being imposed from outside.
Several jurisdictional approach pilot projects are alreadymaking progress. The Sabah State Government was thefirst to pledge its commitment in 2015, and Seruyan (Central
Kalimantan) has subsequently committed to a pilot. In
2016, the Ecuadorian government in Latin America, andseveral countries in Africa, also made pledges towards the
production of sustainable palm oil at the national level under
the Marrakesh Declaration.
In May 2018, the RSPO Jurisdictional Working Group(JWG) met for the first time to deliberate a plan to support
the development of a jurisdictional approach to RSPO
certification.
More information on the membership and mandates of the
JWG can be accessed at: www.rspo.org/about/who-we-are/working-groups/jurisdictional-working-group.

Current Approach

Jurisdictional Approach• New way of thinking for:criteria, control points,
and auditing• System focus• Continuous improvement
i. Guidance, resources& toolsii. Upward delegation
RSPO Certified

30

RSPO IMPACT REPORT 2018

Complies with
P&C

RSPO Certified

ROUNDTABLE ON SUSTAINABLE PALM OIL

Perspectives: Sabah State Government and Forestry Department
The Sabah State Government and Forestry Department have worked inpartnership with the RSPO since 2015 with the objective of certifying all of
Sabah to the RSPO P&C by 2025. This will be done through the groundbreaking
jurisdictional approach – the first of its kind in the world. We talked to theChief Conservator of Forests of the Sabah Forestry Department, Datuk
Sam Mannan, about his experience with the RSPO and the prospects forsustainable oil palm in Sabah.

Datuk Sam Mannan,
Chief Conservator of Forests of the
Sabah Forestry Department
Q:

What made the Sabah Government decide to partnerwith the RSPO on the jurisdictional approach?

A:

Sabah is one of the world’s largest producers of palmoil. It is a critical industry for us as a state, as it provides
significant income that is crucial to the prosperity ofour people. However, land in Sabah is becoming very
scarce, and because other regions are catching up andare operating on a lower cost base, we are finding it
hard to compete in the global market. We believe that
our main opportunity to grow and retain prominence in
the industry lies in our ability to offer something extra,
and that high social and environmental standards
can be a significant competitive advantage. Most of
Sabah’s larger growers are already RSPO certified,and certification currently covers around 25% of our
total plantation area. However, in order to leverage
our sustainability credentials commercially, we needto expand this – bringing with us smaller producers,
and of course smallholders. By expanding coverage of
RSPO certification state-wide, we hope to see strong
support from the marketplace over the coming decade.

Q:

What are the plans going forward, and whatchallenges do you see in meeting your objectives?

A:

We started the programme in 2015 and are targeting
certification of the entire state by 2025. This will be ahard task – and as a first-mover, we have no model
to look to, and there remains a lot of ground to cover.
In some areas we can move fast, while we expect toget bogged down in others. We have established a
Steering Committee, which includes civil society
representatives, to oversee and guide the process. We
are currently placing immense focus on halting all
deforestation and on protecting HCV and High Carbon
Stock (HCS) areas. We are also investing heavily insupport for smallholders, as well as guidance on Free,
Prior and Informed Consent (FPIC) and issues relating
to land tenure and licensing.
With limited funding and labour shortages across the
Sabah oil palm industry, it is no mean feat, but I believe
we will achieve our goal.

Q:

Tell us about your partnership with RSPO?

A:

Our relationship has been magnificent. RSPO hasbrought much-needed technical expertise and funding
into the process, so we have been able to undertake
studies and initiatives that would have been challenging
to achieve without support. We have also been pleased
with RSPO efforts to make this programme highly
visible both nationally and internationally. For example,
we were recently able to present to the United Nations
Framework Convention on Climate Change (UNFCCC).
Being a pioneer in this area, it is important that we areable to share our experiences on a broader platform, sosuch opportunities have great value for us.

Photo Credit: RSPO & Jonathan Perugia

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ROUNDTABLE ON SUSTAINABLE PALM OIL

Q:

You have been involved in forest and conservation policy for decades – have you observed any changes as a resultof the implementation of RSPO certification in Sabah?

A:

There is no doubt that we have made many mistakes over the years, and I believe the RSPO Standard has helped us
address these in a cohesive manner. It is also good to see that new palm oil developing regions seem to have learned fromboth our mistakes and the RSPO’s, and are incorporating sustainability concerns from the outset.
I am seeing great improvements across the board in Sabah. Many of the RSPO certified big growers operating in the state
are making tremendous investments in conservation and reforestation initiatives. In many areas we are seeing severely
degraded forest recover, and important flagship species like the orangutan are stabilising and hopefully on the road to a
population increase.
I am also happy to see that the social aspects of oil palm production are improving. I believe that workers are now treatedmuch better. Housing conditions, pay levels, and safety have all been given a significant lift as oil palm producers arefocusing on meeting international labour standards.
It is also encouraging to see how there have been positive spillover effects to other sectors – particularly in forestry. Many
forest management companies are also involved in oil palm and are implementing parallel practices across both.

Photo Credit: RSPO & Jonathan Perugia

Note: In August 2018, with a new administration in place, Datuk Sam Mannan was served notice of termination of employment. However, the partnership
between RSPO and Sabah Forestry Department continues unhindered. As the original motivations behind our partnership remain valid and relevant to ourstakeholders, we have decided to publish this interview in full.

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RSPO IMPACT REPORT 2018

ROUNDTABLE ON SUSTAINABLE PALM OIL

RESEARCH ON RSPO IMPACTS
Our research activities generate new evidence, bridge gaps in our knowledge and help us to capture the lessons we learn, which
can then be applied to our current work and future initiatives. To date, there are approximately 21 independent and RSPOcommissioned studies on impacts and performance of RSPO certification. Among these, are studies conducted under the Sociallyand Environmentally Sustainable Oil Palm Research (SEnSOR) programme, which has been collecting data and insights since 2015.
During the reporting period, we also launched our Research Agenda, to foster new and innovative collaborations with the researchcommunity. Detailing our priority research questions, the Research Agenda reflects RSPO ToC objectives and has been developedin consultation with experts from the RSPO Secretariat.
The results from a selection of some of the most recent studies have been highlighted throughout this report. The full list of RSPO
studies can be accessed at: www.rspo.org/about/impacts/research-library.

Socially and Environmentally Sustainable Oil Palm Research
The SEnSOR programme is an independent scientific research programme designed to test and validate the impact of RSPO
certification on people, biodiversity and the environment.
Phase 1: Building the evidence base
Phase 1 of SEnSOR entailed building the evidence base essential for effectively measuring the impacts of certification and wascompleted in September 2016. The key findings under Phase 2 and plans for Phase 3 are presented below.

Phase 2: Key findings in 2016–2017
Phase 2 of the SEnSOR programme involved projects in three priority areas: the importance of HCV areas for improving connectivity,
the impacts of RSPO certification on smallholder land management and livelihoods, and the capacity of HCV areas to support
biodiversity and carbon storage.

PROJECT 1: BIODIVERSITYThe Biodiversity team digitised
maps of HCVs in RSPO
plantations in Borneo. Computermodelling techniques were used
to test whether HCVs improveconnectivity in the landscape.
The results showed that almost
half of plantations contained
at least one large HCV patchof a suitable size to support
substantial biodiversity. However,
HCVs only contained an averageof 20% forest cover, and so do
not currently provide muchconnectivity benefit. However,fully reforested HCVs would
substantially improve the level ofconnectivity.

PROJECT 2: PEOPLE
The People team observedand conducted interviews withsmallholders in Jambi, Indonesia.
The results indicate that RSPO
certification is having some impact
on improving intensification of
production compared to noncertified smallholders, especiallyby improving fruit quality.
There is no evidence that this istranslating to a parallel shift awayfrom expansion. Intensification is
occurring in agricultural areas
where smallholders have formal
land titles and are farming on
mineral soils. RSPO is not having
an impact on intensification or
expansion in vulnerable peat andforest areas where smallholders
have different motivations foracquiring land, and where they
face land rights issues that restrict
their participation in certification.

PROJECT 3: ENVIRONMENTThe Environment team conducted
the first set of field surveys of HCV
areas in Kalimantan. Preliminary
results indicate that HCV areas in
RSPO certified plantations provide
important refugia for biodiversity,
notably endangered bird species,
as well as ecosystem services.
However, these areas are currently
not functioning optimally, nor
providing maximum benefits, due
to human disturbances. Fires frompast disturbances resulting fromthe 2015–2016 El Niño–Southern
Oscillation (ENSO) and otherhuman disturbances are major
factors reducing carbon stocks
and biodiversity in HCV areas.
There is a substantial opportunity
to improve forest quality throughthe management of HCV areas
and thereby increase the impact of
RSPO certification.

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Phase 3: Plans for 2018–2019

Project 3 (Phase 2) will be expanded to survey more HCV areas in Sabah. Field and satellite data will be used to compare forest
patches in non-certified plantations. The aim will be to test whether HCV set-asides in RSPO plantations have more impact inconserving forests and biodiversity than remnant patches in non-certified plantations. The Biodiversity team will also conduct a
scoping study of potential unintended consequences of RSPO certification on biodiversity and ecosystems to identify priority areas
for investigation in Phase 4.
As part of Phase 3, the People and Environment teams are collaborating to test the impact of certification on their joint goals of
avoiding carbon and biodiversity losses and improving smallholder livelihoods. Field studies will be conducted in certified and noncertified smallholdings on Borneo.

BUILDING CAPACITY & LEARNING PLATFORMS
Education was one of RSPO’s key themes in 2017, and we have continued to place significant focus on developing our stakeholders’capacities and knowledge throughout the reporting period.

TRAINING, WORKSHOPS& ROADSHOWS IN
2017–2018
RSPO conducted around 15 workshops, training
sessions, seminars and webinars on a wide variety ofsubjects, reaching an estimated 352 individuals fromvarious stakeholder groups.

We held engagement sessions with our Indonesian and
Latin American members at nine different locations
between 2017 and 2018. Each session received around30 delegates.

RSPO Roadshows were hosted in Indonesia, Singapore,
Thailand, Malaysia, Spain and Poland in 2017-2018 aspart of the RSPO Outreach Programme.

In addition to the 2018 media tour in
Latin America, RSPO also hosted a 2017 tour in
Malaysia where journalists were invited to visit
an RSPO certified site in Sandakan and learn
first-hand about the P&C, Group Certification andthe jurisdictional approach.

RSPO SUSTAINABILITY COLLEGE:
FUN, EDUCATIONAL CONTENT ABOUTSUSTAINABLE PALM OIL
We have further enhanced RSPO’s Sustainability
College in 2018 by creating a fun and interactive
platform to educate stakeholders on key sustainability
topics. The platform is structured around content
reflecting the three pillars of sustainability: people,
planet, and prosperity. It has been specifically designed
to deliver a user experience aligned with the way people
learn. Topics are covered in a simplified manner, andanimation, gamified elements, a progress tracker andquizzes are used to keep users engaged.
The revamped platform was officially launched at the
RSPO EURT in June 2018. Nearly 500 users registeredduring the BETA phase (March–June 2018) and thisnumber is anticipated to grow exponentially following
launch. The US is currently the top country in terms ofusers, and Colombia is in the top-five – positive signs
that the platform has the potential to reach consumers
and stakeholders in countries with traditionally lessawareness about sustainable palm oil production.
The platform was initially released with six courses,
and we aim to release more over the next year
and collaborate on courses with other sustainableorganisations in the future.
RSPO Sustainability College: sustainability-college.rspo.org

34

RSPO IMPACT REPORT 2018

ROUNDTABLE ON SUSTAINABLE PALM OIL

LINKING BACK TO OUR THEORY OF CHANGE

Innovating
standards &benchmarks

Continuous improvement of the RSPO P&C and SCCS, training and technical assistance leads to increased
knowledge and capacity in implementing best practices, the mobilisation of growers and other actors,
and further recognition and harmonisation of the RSPO Standard. In turn, this leads to an increase in
the global production, availability and uptake of CSPO, and ultimately, the environmental, social andeconomic benefits associated.

Crediblecertification,verification &grievance

Enhancing RSPO’s certification systems and assurance programme, including training, analytics, andinterpretation platforms, leads to effective implementation of the standard, consistency in accountability
and enforcement, mobilised growers and other actors, and further recognition of RSPO as a credible andleading certification for sustainable palm oil. It also leads to improved risk management throughout thepalm oil supply chain.

Jurisdictional
approaches

Generating
demand,commmitments& uptake

Working with partners and key stakeholders to support the effective development and implementationof a jurisdictional approach to certification creates a platform for driving dialogue and collaboration
amongst businesses, government, civil society and local communities. It will also encourage smallholder
inclusivity and participation, scale up the wider implementation of RSPO certification, and support theoverall use of sustainable production practices.

Our educational initiatives and research activities help to promote and enhance awareness of thebenefits and impacts of sustainable palm oil, ultimately leading to increased membership, as well as
commitments, markets and overall uptake of CSPO.

Our Contribution to the SDGs

RSPO supports the
SDGs•

Through the RSPO P&C, we offer sustainable palm oil production guidelines to our grower members, and we engage intraining, capacity building, and regional outreach activities to support and further its implementation.

•

We collaborate with stakeholders to progress and support commitments being made to the jurisdictional approach tocertification, working to scale up sustainable palm oil production and the impacts and benefits associated in the longer term.

•

We continue to educate our stakeholders, including consumers, about RSPO certification and the impacts of sustainable palm
oil production by publishing research and developing interactive learning platforms.

•

The jurisdictional approach to certification involves the development of regulatory processes and policy frameworks supporting
palm oil certification to drive scale and deliver multiple societal impacts including conservation.

RSPO IMPACT REPORT 201835

I M PA C T S
2018Impact for People
Impact on Our Planet
Impact on Prosperity

““Sustainable palm oil production cannot be
achieved without respect for human rights.
It also entails a commitment to improve
livelihoods, social wellbeing and environmental
standards for all stakeholders that live and workin and around oil palm operations.

Photo Credit: RSPO & Jonathan Perugia

IMPACT FOR PEOPLE“Human rights protected, respected and remedied”“Sustainable livelihoods and poverty reduction”

PEOPLERESPECTING HUMAN RIGHTS
Sustainable palm oil production cannot be achieved
without respect for human rights. It also entails a
commitment to improve livelihoods, social wellbeing
and environmental standards for all stakeholders thatlive and work in and around oil palm operations.
To ensure that community land use rights areprotected, RSPO certified growers are required todemonstrate that plantation land has been obtainedwith the FPIC of local communities prior to its
establishment and development. The right to use theland must not be contested by local people who candemonstrate that they have legal, customary or user
rights.
Aligned with the International Labour Organization(ILO) Core Labour Standards, the RSPO P&C also
incorporates strict requirements on guaranteeing
fair pay, non-discrimination, as well as decent andsafe working conditions for employees of certified
grower members. As well as conducting a social
impact assessment, certified growers must safeguard
workers’ right to collective bargaining, and also
prohibit child labour and all forms of forced labour.

RSPO Human Rights Working GroupThe RSPO Human Rights Working Group (HRWG)
works to preserve the rights of communities,
plantation workers, outgrowers and smallholders,and all other stakeholders affected by the activities ofpalm oil production. Established in 2017, the working
group ensures the successful implementation of thehuman rights criteria under Principle 6 of the RSPOP&C 2013, and reviews the adequacy and clarity of allother relevant criteria.
The HWRG also develops mechanisms and tools
for use by all RSPO members to identify, prevent,mitigate and address human rights issues andimpacts in accordance with the globally accepted
UN Guiding Principles on Business and Human
Rights.

38

RSPO IMPACT REPORT 2018

A key focus of the HWRG during the current reporting
period has been to provide guidance for the revision of
the RSPO P&C based on its review and implementationof existing criteria relevant to human rights. In
addition, the working group has developed a policyon the protection of Human Rights Defenders. The
policy will complement RSPO’s Grievance Mechanism
by enabling Human Rights Defenders and whistleblowers to lodge complaints with greater confidence,
ensuring that their submissions are treated with thehighest level of confidentiality and anonymity. The
policy will be mobilised by the newly established
Investigation & Monitoring Unit (IMU) and is targeted
for release in October 2018.
The HWRG has also organised training forstakeholders, including certification bodies in Asia andLatin America, on the FPIC process under the NPP. A
total of three training courses have been conductedduring the reporting period. A further workshop on
FPIC was held in 2018 during the 7th Latin American
RSPO Conference.

RSPO Labour Task Force
NGOs and the media are increasingly focused onlabour issues and poor working conditions in oil palm
plantations. Among the major issues highlighted
are child labour, forced labour and the trafficking of
migrant workers. The gravity of these violations has
spurred a demand for industry reform and has led
many stakeholders to reflect on the effectiveness ofmonitoring and social auditing procedures in relation
to human rights and labour practices in the palm oil
sector.
Understanding the urgent need to take action onthese concerns, RSPO formed the Labour Rights Task
Force (LTF) in 2017. Led by Verité South East Asia, the
LTF works to strengthen RSPO’s labour protection
standards and processes. This includes improving
the implementation of the standards and ensuring
compliance among RSPO members.

IMPACT FOR PEOPLE

The LTF is also developing a comprehensive programme to address current gaps in the existing system, as well as the implementation
challenges faced by specific stakeholder groups. The focus of the programme will primarily be on improving aspects related toresponsible recruitment, pre-departure considerations and onsite working conditions.4

Developing input and guidance for the RSPO P&C
Review

Improving social auditing

•

•

•

The P&C draft now incorporates more prescriptive
indicators on forced labour, freedom of association,
health and safety, gender and child labour.
A requirement was established in the new P&C
that a decent living wage be paid to workers in all
member companies. The HRWG through the LTF
is engaging with the Global Living Wage Coalition(GLWC) and local consultative groups to determine
decent living wages in specific palm oil producing
countries. A template of all in-kind benefits is
also being considered for inclusion in thecalculation of the decent living wages.

Strengthening capacity•

Key Labour Task
Force focus areas
2017−2018

The LTF ispartnering withIndonesian NGOs
to develop capacity
building ‘train the
trainer’ programmesthat socialise RSPO
labour standards to workers
so that they are sufficiently
informed to report non-compliances.

Monitoring Labour Conditions with
Innovative Technology
In June 2018 we partnered with Ulula, a technology
platform that specialises in monitoring the risk of rights
abuses in organisations and supply chains. Together wehave developed a simple and inclusive mechanism formonitoring potential worker incidents, identifying rights
abuses and monitoring employee satisfaction and social
investments in oil palm plantations.
The free tool was piloted during an independent field
verification related to a complaints case in North Sumatra,
as a measure for monitoring potential reprisals post-

4•

The LTF and Assurance Task Forcepartnered with Verité to host a Social
Auditing workshop (Subang, Malaysia,
February 2017) for 23 auditors fromcertification bodies to strengthen skills
in relation to the collection, analysis andpresentation of audit findings and ensurecomprehensive results for social audits.
The LTF is scoping the development of a
Social Auditing Protocol for auditorswith ASI.

verification. It enabled palm oil workers to anonymously
notify RSPO directly of any reprisals using simple feature
mobile phones. There was also an option for workers toprovide contact details, which allowed the RSPO Secretariat
to follow up on some of the cases submitted.
RSPO and Ulula will now build on this initial work to createa system that enables RSPO to better support its members
and partners in monitoring non-compliances, including
labour conditions, and which provides a platform forcomplaints and feedback to be sent directly to the RSPOSecretariat.

More specifically, onsite working conditions and issues that the programme intends to address include: onsite worker management, living wage, freedom of
association, non-discrimination, gender rights, the rights of children and young workers, working conditions and rights of migrant workers, and ensuring there
are no forms of trafficked or forced labour.

RSPO IMPACT REPORT 2018

39

IMPACT FOR PEOPLE

Perspectives: Tenaganita

Tenaganita is a Malaysian human rights organisation dedicated tosupporting and protecting migrants, refugees, women and children
from exploitation, abuse, discrimination, slavery and human trafficking.
Executive Director, Glorene Das, elaborates on Tenaganita’s experience
with RSPO and RSPO’s role in addressing labour issues within thepalm oil industry.

Glorene Das,
Executive Director,
Tenaganita, Women’s Force
Tenaganita has been directly involved with RSPO since theearly years of the organisation, when our founder, Ms. Irene
Fernandez, participated in the formulation of the first RSPOP&C concerning labour and social issues. Subsequently, we
have provided expert advice for plantations seeking to become
RSPO certified, as well as internal auditing services for RSPO
certified companies. We have also played a significant rolein the ban of paraquat from plantations, and have developed
gender policies for leading producers.
RSPO has generated public discussion, and consequently, agreater interest in labour and human rights in the context ofpalm oil production. Plantation companies have become moreaware that there is a human side to the palm oil industry, andthat inaction on labour and human rights issues poses anincreasingly greater risk for reputation, markets and profits.
To some extent, they have begun to address social issues
more proactively, including issues linked to health and safety,
gender sensitivity, forced labour, recruitment costs, retentionof passports, housing, and minimum wage.

requires much more attention – ensuring that the benefitsof RSPO certification are reaching all workers, including
women.
Tenaganita expects that RSPO will become a driving force tohumanise the plantation industry. We hope that the standard
and RSPO as a platform will facilitate the transformation of thesocial environment in the plantation sector, so as to include
public amenities, schools, more efficient transportation,
health services, recreational facilities and more. This willcontribute to the plantation sector becoming more attractive
as a place of employment for both locals and foreigners.
At the same time, more focus needs to be placed on theissue of wages, which should be more reflective of thearduous nature of work and the difficult conditions found inplantations. This is why the RSPO Standard must go beyond
ensuring compliance with the legal minimum, and push for amore equitable level of wages.

Notwithstanding this progress, the palm oil industry by andlarge has yet to internalise the philosophy underlying the RSPO
P&C, which should by default be accepted as the standard for
conducting business. The focus is too often on achieving thecertification itself, rather than on the purpose and value of
implementing the P&C. Improvements will only come about
when investors and managers of oil palm plantations view
labour not simply as a factor in production, but as humanindividuals with rights, and co-creators of wealth of which
they are also entitled to a share. This is a message that RSPO
must constantly drive home to all stakeholders.
Our work with the communities of workers in plantations,especially local women workers, has provided valuable
insights into their perception of RSPO. They do not see how
RSPO can improve their lives and they feel excluded from thecertification and surveillance process. This is an area that
Photo Credit: RSPO & Jonathan Perugia

40

RSPO IMPACT REPORT 2018

IMPACT FOR PEOPLE

MEMBER ACCOUNTABILITY: ADDRESSINGCOMPLAINTS & GRIEVANCESThe RSPO Complaints System provides a framework for handlingand addressing complaints submitted against RSPO members.
The process, which is accessible to both RSPO members andnon-members,5 ensures that any alleged breach of the rules set
out in our core governance documents and standards are fairly,
impartially and transparently resolved.
The system is critical for ensuring accountability within our
membership as well as the credibility of the RSPO Standard. It
also creates opportunities for our members and stakeholders,
including companies, NGOs, workers and communities, toidentify issues and discover solutions together.

RSPO Complaints and Appeals Procedures
The RSPO Complaints System was established in 2009. It
was then reviewed following the adoption of Resolution 6f on“Guaranteeing Fairness, Transparency and Impartiality in the
RSPO Complaints System” in November 2013. The revised
RSPO Complaints and Appeals Procedures (CAP) was endorsedby the RSPO Board of Governors in June 2017 and came into
effect on 1 August 2017.

One of the new key features of the CAP is the inclusion of an
appeals mechanism, which is mandated to deliberate anddeliver appeals decisions. Under the revised CAP, the powers of
the Complaints Panel have also been strengthened, including
the authority to take the appropriate measures against amember, if found to have engaged in any form of retaliation
or reprisal against the complainant, affected communities orother human rights defenders.
Other new features of the CAP are listed in the RSPO Impact
Update 2017 (page 20).
RSPO Dispute Settlement Facility
RSPO aims to ensure that disputing parties have reasonable
access to sources of information, advice and the expertisenecessary to engage in a complaints process on fair, informed
and respectful terms. The RSPO Dispute Settlement Facility(DSF) provides an impartial facilitation mechanism to support
RSPO members, as well as local communities and otherstakeholders, in using mediation as a means to resolve disputes.

Complaints & Grievances in 2018
With the revised CAP in place, we have now reviewed and restructured our data collection system for complaints. The data presented
in this report reflect these structural changes, and therefore differ from data presented in previous Impact Reports and Impact
Updates.

Since 2009, we have recorded a
total of 153 cases through ourComplaints System. Of these,
110 were official complaints
cases, while the remainder werecategorised as reported cases
and were not escalated as formal
complaints to the Complaints
Panel. As of 2017, we have removed
this category with the new CAP
in effect. All reported cases have
either been closed or escalated asformal complaints.

5

Of the 110 official complaints cases
received by the Complaints Panel,
46 cases remain open (active cases).
A total of 64 cases (58%) were closed
between 2009 and 30 June 2018, which
averages out to 6.4 cases closed per
year.

The average number of days forresolving complaints cases has
continued to decrease since 2017, anddropped by 63% between 2016 and2017. The average number of days
that active cases stay open decreased
by 37% in the same timeframe.

By country, Indonesia has the highest
number of complaint submissions,and accounts for 74% of active cases,
and 69% of the total number of cases
since 2009.

The most prevalent issues raisedamongst the complaints cases
submitted are related to FPIC and
HCV, followed by human rights andlabour.

Non-members include affected communities (and their nominated representative), workers (and their nominated representative) and other interested parties.

RSPO IMPACT REPORT 2018

41

IMPACT FOR PEOPLE

Number of Complaints Cases by Year (2009–2018)

Number of complaints

25

70

64

60

20

19

20

17
15

14

13

0

40

46

12

12

11

10

10
5

50

15

30

8
5
3

20

5

4

4

10

2

0

0

0

2009

2010

2011

2012

2013

2014

2015

2016

2017

0

2018

Year
Number of complaints RECEIVED
each year

Number of complaints CLOSED
each year

Total number of complaints remaining
OPEN at year-end (cumulative)

Total number of complaints CLOSED(cumulative)

Note to data: Figures for 2009–2017 are representative of full calendar year (1 January–31 December). Figures for 2018 are inclusive up to
30 June 2018.

Nature of Complaints (2009–2018)

6

New Planting Procedure

4

Plasma8

Legality

29

High Conservation
Value

16

Labour5

Pollution

18

Human
Rights3

Certification

44

Free, Priorand Informed
Consent

9

Code of
Conduct

Note to data: As some of the complaints cases fall under more than one category, the data presented does not reflect the total number of official
complaints cases received. Data is representative of 1 January 2009 up until 30 June 2018.

42

RSPO IMPACT REPORT 2018

IMPACT FOR PEOPLE

LINKING BACK TO OUR THEORY OF CHANGE

Innovating
standards &benchmarks

Crediblecertification,verification &grievance

When applied properly, the P&C are intended to drive positive social outcomes – safe and decent working
environments, improved livelihoods, land and community rights respected, and human rights upheld.
Through the P&C review, we are working to further strengthen our social requirements.

An effective, accessible grievance system, and improved monitoring and social auditing procedures will
help to strengthen member accountability and contribute to the credibility of the RSPO Standard. They
will also improve consistency in the standard’s implementation, enhance stakeholder trust, and help tomanage the social and environmental risks associated with palm oil production.

Our Contribution to the SDGs

RSPO supports the
SDGs•

The P&C 2013 are aligned with the ILO Core Labour Standards and require all certified growers to guarantee decent and safe
working conditions and fair pay, ensure there is no harassment or abuse in the workplace, safeguard the right to collective
bargaining, and ban bonded and child labour.

•

Fair labour standards must apply to all employees, including temporary and migrant workers. RSPO is working to strengthensocial audits to cover all risks associated with the reliance on casual labour, and to ensure that all workers have access to
the RSPO Complaints System.

RSPO IMPACT REPORT 2018

43

IMPACT ON
OUR PLANET“Conserved, protected and enhanced ecosystems thatprovide for the next generation”
PLANETPROTECTING CRITICAL ECOSYSTEMS& BIODIVERSITYHigh Conservation Value Assessment
and Management

Unsustainable means of growing and processing
palm oil have led to the widespread degradation ofcritical ecosystems and biodiversity loss in producing
regions, with deforestation being the primary andmost urgent cause for concern. Clearing of HCS
forests and HCV areas threatens rare species withextinction, and can lead to the impoverishment oflocal communities in the long term. Moreover, oilpalm development on peatlands has been linked tohigh CO2 emissions, increased risk of fire, peat soil
subsidence, consequent flooding, and productivity
loss.

The RSPO Standard prohibits the clearing ofprimary forests, any areas that contain significant
concentrations of biodiversity or fragile ecosystems,
or areas that are fundamental to meeting basic ortraditional cultural needs of local communities.
Under the P&C 2013, growers are required toassess and develop an operations management
plan for maintaining and enhancing HCV areas and
RTE species, as well as sites of social and cultural
importance for local communities.

RSPO works to address these and other environmental
risks by setting out requirements for growers to follow
best management practices, conserve biodiversity,preserve essential ecosystem services, and respect
cultural landmarks and community access to natural
resources. Within these requirements, producers arecommitted to protecting primary forests, HCV areas,
and rare, threatened or endangered (RTE) species.
They are also committed to planning developmentin such a way as to minimise net greenhouse gas(GHG) emissions towards the goal of low carbon
development.

As at 30 June 2018, a total of 263,177 hectares of HCV
area has been identified and is managed by RSPO
certified members, an increase of 39% since thelast reporting period. Just over half of the total area
is located in Latin America (145,873 hectares), withIndonesia and Africa accounting for a combined 37%of the remaining area.
Significant gains in HCV area have also been madeat regional levels. In Africa, identified HCV area
increased by 132% (18,043 hectares) over the course of
the reporting period, while there was an 83% increase(66,229 hectares) in Latin America.
The RSPO welcomes this continued trend of positive
growth, which builds on the overall HCV area increase(21%) noted and reported in 2017.

HCV Area Identified and Managed by RSPO Certified Members(Total: 263,177 ha as at 30 June 2018)
5%

3%
12%

55%

AfricaIndonesia
Latin America
Malaysia
Rest of the World

25%

44

RSPO IMPACT REPORT 2018

IMPACT ON OUR PLANET“An impact analysis of RSPO certification on Borneo forest cover andorangutan populations”
RESEARCH BACKGROUND

2017
BorneoLed by Borneo Futures, the research evaluates whether RSPO certification
is beneficial to orangutans, at a macro level (throughout Borneo) and microlevel through fine-scale analysis within a well-renowned region for orangutans(Kinabatangan, Sabah). Using remote sensing, concession boundary mapping, andaerial and ground line transect survey data sets, the study compares deforestation
rates between RSPO and non-RSPO oil-palm estates within 2,771 palm-oil estatesacross the island of Borneo, and the implications of this for orangutan conservation.
The full report is available at: rspo.org/about/impacts/research-library

KEY FINDINGS
Total loss of intact and logged forest(2000–2015)

25 times

Orangutan population trends in Borneo oil-palm
concessions between 1999 and 2014
13,480
11,206higher in non-certified compared to
RSPO certified concessions

9,302
419

Annual forest loss rates of RSPO certified
concessions have consistently declined after
2005, while those of non-certified concessions
have remained consistently higher.

1999-2002

359

275

2003-20082009-2014

Non-RSPO (relative loss: 2.2%)
RSPO (relative loss: 2.1%)

Link to RSPO Theory of Change:
Innovating standards& benchmarks

Credible certification,verification & grievance

Implemented BMPs

Increased knowledge& capacity

Ecosystems better
protected

Biodiversity protected

RSPO IMPACT REPORT 201845

IMPACT ON OUR PLANET

Strengthening Our Commitment on
Halting Deforestation

Africa: Challenges and Solutions in New
Landscapes

While the implementation of the P&C has led to some progressin protecting primary and secondary forests, we recognise thatmuch more needs to be done to achieve our goals and vision.
As part of the RSPO P&C review process, we have been working
with key stakeholders to strengthen the standard. This work has
included expanding requirements on forest protection throughthe addition of new requirements on halting deforestation incollaboration with the High Carbon Stock (HCS) Approach
Steering Group, and new requirements on peat protection,conservation and sustainable management.

With available arable land and an existing market thatis currently serviced through imports,6 Africa has inrecent years become a new frontier for large-scale palm
oil production. The global demand for palm oil is rising,and African governments are increasingly seeing oilpalm development as a means to drive socio-economic
growth. Investors have also been turning their attention
to the region, and it has been estimated that by 2021, up
to 22 million hectares of land in West and Central Africa
could be converted to oil palm plantations.7­

The draft P&C contains a new proposed criterion (7.12), which
integrates requirements for the identification, maintenance andenhancement of HCS areas with the protection of forests. This
new criterion includes revised and new indicators requiring
growers to use an integrated RSPO endorsed methodology toidentify HCS forest and HCV areas that should be maintainedand enhanced.

The growth prospects for Africa’s sustainable palm
oil industry are promising, but as in many developing
markets, there are major challenges to realising thispotential. One of the most urgent is deforestation,
which is rooted in the ethical debate of socio-economic
development versus conservation. Countries such as
Liberia, Gabon and Congo have extensive or high forest
cover, but are also within the scope of this new frontier
for large-scale oil palm plantation expansion.

The new Criterion 7.12 also aims to address deforestation in
HCS forests, while balancing the need for development, poverty
alleviation, and community livelihoods in countries with highforest cover (HFC). We acknowledge that to provide lasting
solutions to deforestation, we will need to stay engaged inlandscapes with HFC, and allow local stakeholders (particularly
communities and governments) to make their own participatory
decisions on land use in these landscapes. Hence, the draft
recognises the need for an adapted procedure.
A formal No Deforestation Joint Steering Group (NDJSG) will beestablished by RSPO and the HCS Approach Steering Group to
develop the adapted procedure applicable in HFC countries andlandscapes. The objective of the procedure will be to support
the sustainable development of palm oil by indigenous peoples
and local communities with legal or customary rights.

Other key issues include land rights and smallholder
inclusion. Smallholders account for the majority ofthe palm oil production base, yet their inclusion in
the sustainable palm oil supply chain has so far been
limited. As with most palm oil smallholders, smallerscale farmers in Africa are also facing issues related to
productivity and FFB quality.
With the tremendous potential for sustainable growth, we
see that RSPO has a vital role to play in Africa. However,with such distinctiveness and variation at a local level, it
is important that our approach and solutions are rooted
in a firm understanding of local context. We have taken
this into consideration across a broad range of activities
in 2017 and 2018, including the P&C review process. We
also welcomed a new RSPO-Africa representative in2017, who will help us better understand how the industry
operates in the region and provide locally informed
insights that contribute to and improve our work.

Photo Credit: RSPO & Jonathan Perugia
6
7

46

Although a net importer, palm oil in Africa accounts for around 70% of edible oil consumption.
Source: www.proforest.net/en/news/marrakesh-declaration-signed-at-cop22.

RSPO IMPACT REPORT 2018

IMPACT ON OUR PLANET

Perspectives: Benso Oil Palm Plantation
Benso Oil Palm Plantation (BOPP) is a Ghanaian company involved in
the growing of oil palm and processing of FFB into crude palm oil (CPO).
Formed in 1976 and listed on the Ghana Stock Exchange in 2004, BOPP
owns a concession of 6,799 hectares, of which 1,650 hectares is managed
by schemed smallholders. BOPP was previously a subsidiary of Unilever
Ghana, and has been a subsidiary of Wilmar International Limited since2011. A pioneer for CSPO in the region, BOPP became the first grower toobtain RSPO certification in Ghana, together with its schemed smallholders,in 2017. We spoke with General Manager Samuel Avaala Awonnea about
the progress of the palm oil industry in Africa and the potential for RSPO toaddress challenges in the region.

Q:

In what way is RSPO relevant to the current context ofthe palm oil industry in Africa?

A:

From a food security perspective, it is becoming
increasingly important for West African countries
to scale up the production of palm oil. Palm oil isfound on most household menus in the region andcontributes substantially to daily food consumption. As
a net importer, however, we consume far more than we
produce. This is partly why governments have started
developing programmes aimed at expanding production,
to strive towards self-sufficiency and facilitate theopportunity to venture into exports.
RSPO is very relevant in this rapidly evolving context.
With the rise of the oil palm industry in the region,
there is a growing risk that production is carriedout in ways that are not ecologically sustainable andsocially responsible. Moreover, about 60-70% of thecurrent production in West Africa is represented bysmallholders. With yields at around one-third of theirpotential, smallholders could benefit significantly fromsustainable production practices, while mitigating thenegative impacts of intensification and extensification.

Q:

What are some of the key challenges for growers in
the region?

A:

Natural limitations that affect yields are a key challenge
faced by producers in Africa. In areas where oil palm
grows, we tend to have distinct periods of three to fourmonths without rain. By comparison, in Southeast Asia
there would be a more even distribution of rainfall
throughout the year. In addition, solar radiation is lower
and more infrequent in Africa than in Southeast Asia.
Parts of the rainy season are cloudy and overcast, which
reduces the effectiveness of solar radiation. Conversely,in the dry season when solar radiation is optimal, there
is no rain.

Samuel Avaala Awonnea,
General Manager,
Benso Oil Palm Plantation

BOPP and other large plantations try to address
such challenges by implementing best management
practices (BMPs), which is also an important part of
the RSPO P&C. Through Solidaridad’s Sustainable West
Africa Palm Oil Project, we have been conducting trials
for BMPs specific to Ghana. The project has contributed
to yield increases as well as our RSPO audit results, andwe believe that these BMPs should be nationally adopted.
This would be especially valuable in encouraging more
small producers to operate sustainably, which couldin turn increase their incomes and their potential toachieve RSPO certification.
Q:

What is the current progress in relation to CSPO
production and uptake in Africa?

A:

A very limited amount of CSPO is produced in Africa atpresent, and there is virtually no uptake. Demand forpalm oil outweighs supply so there is a lack of incentive
to produce CSPO – in particular, as there are always
enough buyers willing to purchase conventional palm
oil and do not see the need to pay a premium.
At BOPP we see sustainable production as a
responsibility and a duty, with or without external direct
incentives. It is, however, understandable that financial
incentives will be needed for the wider production baseto adopt sustainable practices. This is especially thecase for independent smallholders who face resource
constraints and may not see sustainability as a priority.
More focus needs to be directed to this part of the
production base to ensure that the gap between demandand supply is bridged in a way that does not result in theuse of unsustainable practices.

RSPO IMPACT REPORT 201847

IMPACT ON OUR PLANETQ:

How can RSPO strengthen its support for producers andhelp advance the uptake of CSPO in the region?

A:

We view the appointment in 2017 of a regional RSPO
representative for Africa as a critical step, and hope thatRSPO will continue to strengthen its representation. It
would also be helpful if producers were able to engage
RSPO approved certification bodies based in the region.
This would reduce the cost burden of certification andensure auditors have experience and knowledge groundedin the local context.
Certification can be a cumbersome process, especiallyfor smallholders. We believe that driving the jurisdictional
approach to certification in Africa, and having more direct
support from RSPO in these areas, will lead to significant
progress in terms of P&C compliance.
Lowering some of the barriers for smaller producers would
also certainly help to scale up the adoption of sustainable
practices. A progressive approach to sustainability andcertification, which encourages smallholders to takegraduated steps in the use of sustainable practices andenables recognition for the progress made, would be very
helpful.
While further improvements are needed, BOPP welcomes
the development of the new RSPO Smallholder Standard.
We look forward to seeing how this draft progresses andthe results of its implementation.

Photo Credit: RSPO & Jonathan Perugia

New Planting Procedure: Responsible Development of New Plantings
The RSPO New Planting Procedure (NPP) is a credible and quality-driven process that outlines RSPO’s guidance and rules on
responsible planting. Successful implementation of the NPP requires compliance with all the indicators of RSPO P&C 2013
Principle 7. The purpose of Principle 7 and the NPP is to ensure that new oil palm plantings do not have a negative impact on
primary forest, HCVs, HCS areas, fragile and marginal soils, or local people’s lands.
Launched in 2009 and revised in 2015, the NPP consists of a set of assessments and verification activities that must be conductedby growers prior to all new oil palm plantings developed after 1 January 2010.
The updated version came into effect in January 2016 and can be accessed at: rspo.org/certification/new-planting-procedures.
NPP Progress in 2018
As at 30 June 2018, 1,530,824 hectares across 14 countries were subject to NPPs, a 3% increase since the last reporting period.

Indonesia accounts for 72% of the area subject to
NPPs, followed by Africa, which accounts for 23%.

Solomon Islands and Sierra Leone joined the list of
countries that have applied for NPP, adding a combined
area of 12,677 hectares. Due to the resignation of one
producer in Costa Rica during the reporting period, thiscountry is no longer on the list of NPP submissions.

11 NPP notifications were approved covering 47,976
hectares in Indonesia, Papua New Guinea, Guatemala,Nigeria, Solomon Islands and Sierra Leone.

Under the 11 notifications approved during thereporting period, 31,008 hectares are proposed for
HCV, bringing the total HCV area under the NPP to297,038 hectares (as at 30 June 2018).

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RSPO IMPACT REPORT 2018

IMPACT ON OUR PLANET

Remediation and Compensation Procedure
The Remediation and Compensation Procedure (RaCP)
was established to address land clearance and plantation
development undertaken without prior HCV assessment sinceNovember 2005. The procedure requires growers to first disclose
any new land development that took place without a prior HCV
assessment, calculate environmental liabilities through a Land
Use Change Analysis (LUCA), then to carry out remediation for
affected sites or parties, and make additional contributions tobiodiversity conservation onsite or offsite.
Compensation liabilities are determined through the use ofa matrix that combines vegetation coefficients as proxies for
HCVs, land clearance periods, and membership status at thetime of land clearance. The Final Conservation Liability (FCL) is
expressed in hectares.

As at 30 June 2018, a total of 908,740 hectares of noncompliant land clearance (NCLC) – land clearance andplantation development undertaken since November 2005
without prior HCV assessment – have been disclosed by 330
management units.
The following charts show the disaggregated information on
NCLC and FCL data of all disclosed liabilities by region, compiled
from satisfactorily reviewed LUCA reports and reports that arein the various stages of review by external GIS specialists. To
date, 39% of the total number of submitted LUCA reports havefulfilled the requirements for satisfactory analysis of land coverchange and liability assessment – an increase of 20% since thelast reporting period.

NCLC and FCL Data by Region (as at 30 June 2018)34,127

6,645
120,189

10,775799

7,372

AfricaLatin America
OceaniaSoutheast Asia

747,053

99,181

NCLC (ha)*FCL (ha)**Total : 908,740

Total : 117,400* NCLC: Non-compliant land clearance or land clearance without prior HCV assessment since November 2005** FCL: Final Conservation Liability

An additional 76 management units have disclosed liabilities since publication of the RSPO Impact Update 2017. This is primarily
due to new membership applications received, as well as the consolidation of management units under the Group Membership
rules, which was endorsed with immediate effect in July 2017.

Cumulative Number of Management Units with Disclosed Liabilities
Reporting period

Management units

NCLC (ha)FCL (ha)Up to 30 June 2018

330

908,740

117,400

Up to 30 June 2017

253

703,413

68,174RSPO IMPACT REPORT 2018

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IMPACT ON OUR PLANET

Land Cover Change 2005–2014 in Areas Developed without Prior HCVAssessment (by Vegetation Coefficient)
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,0002005–2007

2007–20092010–2014

After 9 May 2014

Structurally Complex Forest (VC1)

Structurally Simplified / Degraded Forest ( VC0.7)

Agroforesty (VC0.4)

Higly Modified / Degraded Areas (VC0)The chart above summarises land cover change in areas
developed without prior HCV assessment after November
2005. The bulk of non-compliant clearance involved
degraded or highly degraded vegetation (e.g. open grasslandand scrub) and existing agroforestry plantations. Note thatless than 5% of land cleared without HCV assessments
involved the loss of high-quality forest (VC 1).

In addition to disclosure of NCLCs and the submission of LUCAs,
growers have submitted revised standard operating procedures(SOPs) and/or opted to submit a declaration of SOP verification
by an accredited certification body to demonstrate commitment
to prevent further NCLCs.

Photo Credit: RSPO & Jonathan Perugia

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RSPO IMPACT REPORT 2018

IMPACT ON OUR PLANET

Reducing GHG Emissions
As at January 2017, the RSPO PalmGHG Calculator, and New
Development GHG Calculator are required for calculating andprojecting GHG emissions from operations, including land
use change GHG emissions of existing operations and new
developments. GHG emissions are publicly reported throughannual audit summary reports and NPP notifications, which are
published on the RSPO website.
Developments on peatland are a significant source of GHG
emissions in oil palm cultivation, together with methane(CH4) from Palm Oil Mill Effluent (POME) and land clearance
emissions. The PalmGHG Calculator defines peat emissions
as emissions from peat oxidation and nitrous oxide (N2O)
emissions specifically from peat. While emissions from oilpalm plantings on mineral soils are to a large extent offset bycrop sequestration,8 the monitoring of PalmGHG submissions
indicates that planting on peat increases overall GHG emissions.
The following chart plots the average emissions intensity – intonnes of CO2 equivalent per tonne of crude palm oil (CPO)
produced (tCO2e/tCPO) – of all PalmGHG submissions by
RSPO certified members between 2015 and 2017. As can beseen, cultivated areas containing peat have an annual average
emissions intensity that is 250% higher than cultivated areas
on mineral soils. This is solely attributed to the addition of peat
emissions. It is important, however, to note that the impact ofemissions from peat would largely depend on various factors,
including the extent of the peat and water management
practices within areas containing peat.

Annual Average Emissions Intensity 2015–2017
6.00

Annual average (tCO2e/tCPO)

5.00
4.00

4.09

3.94

3.98

3.00
2.00

1.37

1.02

1.14

1.00
0.00
2015

2016
Peat

2017
MineralNote to data: Comparison of emissions from 100% mineral versus areas containing peat (Source: PalmGHG submissions 2015–2017)

Acknowledging the need to manage and minimise emissions from upstream operations, the RSPO has published several BestManagement Practice (BMP) modules as guidance to address issues relating to GHG emissions, peat management on existing oilpalm plantations, and peat rehabilitation.
RSPO Members’ Commitment to No Peat for New Oil Palm Development
The NPP 2015 requires growers to conduct a series of assessments (including GHG assessments) prior to all new plantings. In termsof avoidance of development on peat areas, RSPO members have shown commitment beyond the requirements of the P&C 2013.
Submissions received from members since 2015 have shown zero development on peat, and a total of 7,481 hectares of peatlands
conserved. The following chart shows a steady increase in the cumulative annual CO2 emissions avoided from the conservation ofpeatlands up to a total of 515,000 tCO2e/year in 2018. This is equivalent to the annual emissions produced by 110,000 cars.989Depending on the type of land cover conversion, extent of replanting and new planting versus total planted area.
Source: US EPA equivalencies calculator. Accessible at: www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

RSPO IMPACT REPORT 2018

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IMPACT ON OUR PLANETNPP Submissions 2015–2018 (Peat Conserved)

Total peat avoided (ha)7,000

500,000

6,000
400,000

5,000

300,000

4,000
3,000

200,000

2,000

CO2e avoided (tCO2e/year)

600,000

8,000

100,000

1,000
0

2015

2016

2017

2018

0

NPP submissions by year
Peat(2015)

Peat(2016)

Peat(2017)

Peat(2018)

Cumulative
CO2e avoidanceNote to data: Peat areas (ha) conserved and annual GHG emissions avoided10 (tCO2e/year) (Source: NPP submissions as at April 2018).

RSPO fully recognises the large quantity of emissions that result from cultivation on peatlands, as well as the importance of
peatlands both socially and environmentally. The current RSPO P&C 2018 draft has therefore been updated with a strict no newplanting on peat policy (Criterion 7.7), and emphasis is placed on the proper management of existing oil palm cultivation on
peat. Criterion 7.7 requires strict adherence to RSPO best management practices for existing oil palm cultivation on peatlands.
A drainability assessment must be conducted five years prior to replanting to quantify the risk of flooding in existing plantingson peat. This assessment will determine if an area is suitable for replanting, or better suited to alternative forms of utilisation,such as paludiculture.

Photo Credit: RSPO & Jonathan Perugia

1052

GHG emissions avoided takes into account peat emissions alone excluding land clearance emissions.

RSPO IMPACT REPORT 2018

IMPACT ON OUR PLANET“Towards low GHG emission in new oil palm plantings”
RESEARCH BACKGROUND

2018
Malaysia

Indonesia

Papua New Guinea

South America

AfricaPublished in The Planter magazine in 2018, the study was authored by Gan Lian Tiong, Faizal Parish, Henry Cai andJavin Tan from the RSPO Emission Reduction Working Group (ERWG). The RSPO ERWG commissioned the research tounderstand the effectiveness of the RSPO GHG Assessment Procedure for New Development in guiding RSPO growers andmillers to plan development in such a way that minimises net GHG emissions towards the goal of low carbon development.
This was carried out through the analysis of data obtained from GHG assessment reports submitted between 2015 to 2017
through the RSPO NPP (version: November 2015).
The full report is available at: rspo.org/about/impacts/research-library

KEY FINDINGS
Projected net GHG emission reduction of 2 million
tCO2eq and 1.4 million tCO2eq of genuine savings

Out of 193,857 hectares of landassessed:••

2 million tCO2eq

Equivalent to388,516 cars*
removed from theroad in a year*34%

66,237 hectares (34%) wereidentified for conservation
5,641 hectares of peat soil area
was identified and 100% of thisarea was conserved
66%

Conserved

1.4 million tCO2eq savings is from:•••

Avoided land clearance
Peat avoidanceConservation area sequestration

Source: www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

RSPO GHG Assessment Procedure:
The RSPO GHG Assessment Procedure is a useful tool to assist growers in achieving low carbon new oil palm development.
The procedure includes land cover analysis and mapping, soil mapping, carbon stock estimation, carbon stock maps, integrated
maps, scenario setting, GHG emission calculation, selection of optimum scenarios, and management and mitigation plans.

Link to RSPO Theory of Change:

Innovating standards& benchmarks

Credible certification,verification & grievance

Reduced pollution &GHG emissions
Implemented BMPs

Biodiversity protected
Ecosystems better
protected

RSPO IMPACT REPORT 2018

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IMPACT ON OUR PLANET

and monitoring activities and thereby strengthen the credibilityof our standard, verification and grievance systems.

Keeping RSPO Members Accountable withGIS Technology
In 2017 and 2018, we have remained focused on increasing ourmembers’ accountability and developing practical solutions
to challenges associated with monitoring the implementationof RSPO environmental requirements. This has included
expanding our use of geographical information system (GIS)
technology to enhance our impact evaluation and monitoring
activities.
Launch of GeoRSPO in 2017
We partnered with the World Resources Institute (WRI) in
2016 to develop a mapbuilder app called GeoRSPO. Featuring
powerful analytical tools for statistical and geospatial analyses,
GeoRSPO is an interactive mapping platform that featuresconcession maps submitted by RSPO grower members. Using
GeoRSPO, it is now possible for anyone to conduct preliminary
assessments on potential non-compliances by RSPO members.
Establishing GIS Capacity within the RSPO Secretariat

Expanding Our Member Concession Map Database
Since 2013, RSPO members who have plantation operations
are required to submit all concession maps together with their
Annual Communication of Progress (ACOP), whether certified
or not. The number and accuracy of maps being submitted has
also been essential for monitoring environmental accountability
and identifying issues such as land clearing and forest fires.
Collecting map submissions and growing our database has
therefore remained a key priority throughout the reporting
period.
As at 30 June 2018, we have successfully collected 76% ofconcession maps held by RSPO grower members—149 map
submissions out of a total of 196. The majority of these maps
are from member concessions in Indonesia, followed by
Latin America and Malaysia. Notably, there were no pending
submissions from RSPO members in Africa and only threepending from our Malaysian members.

In 2017, we also appointed a GIS manager to lead our newly
established GIS Unit and to manage the GeoRSPO platform.
With the support of the new manager, we will continue toexplore innovative ways to improve our GIS related investigation

RSPO Member Concession Map Submissions (as at 30 June 2018)
41
35

24
21

24

16

14

14
8

3

1

0
Indonesia

Latin
America

Malaysia
Submission

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RSPO IMPACT REPORT 2018

AfricaThailandNon Submission

Other

IMPACT ON OUR PLANET

Monitoring Fire Hotspots in Member Concessions
The establishment of our GIS Unit has enabled RSPO to develop a mechanism to retrieve and analyse fire hotspot data, andeventually monitor potential fire occurrences within both certified and uncertified concessions. When a hotspot occurs at a grower
member’s concession, our team contacts the concession to organise a field verification. Any actual fire occurrences found within
the concession must then be reported back to the RSPO Secretariat, along with an update on actions taken and all requested
documentation.11

Fire Hotspot Distribution in RSPO
Member Concessions

Fire Hotspot Density in RSPO Member
Concessions

July 2017–June 2018

July 2017–June 2018

Notes to data:• Hotspots are not necessarily actual fire incidences.
• Our GIS system locates fire hotspots retrieved from the Fire Information for Resource Management System (FIRMS).12

Total hotspots in Indonesia & Malaysia:140,584 as at 30 June 2018
Total hotspots within RSPO member concessions in Indonesia & Malaysia: 682 (0.49%) as at 30 June 2018

Most common causes of fire:••

Burning carried out by local communities
Spreading from neighbouring areas

Most common management actions taken by the company••

Monitoring and patrolling of planted, recently planted and recently cleared area
Fire guards on duty throughout the plantation for the duration of the dry season

Monitoring HCV Area Management with GIS Technology
We are currently working on a solution that uses geospatial technologies and remote sensing to determine whether HCV areas arebeing managed and monitored effectively. Our future plans include monitoring these areas using Global Forest Watch (GFW) Pro,an online platform under development at WRI.

11
12

Documentation includes information on the cause of the fire, the relative location of the fire, best practices in fire prevention and management by the concession
and any photographic evidence.
FIRMS is a programme developed by the University of Maryland, with funds from NASA’s Applied Sciences Program and the United Nations (UN) Food andAgriculture Organization (FAO). For technical details on how hotspots were detected, see: https://earthdata.nasa.gov/firms-faq#ed-fire-detection.

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IMPACT ON OUR PLANET

Perspectives: World Resources Institute (WRI)
WRI is a global non-profit research organisation that works in six critical areasof sustainable development: climate, energy, food, forests, water, and cities andtransport. An active RSPO member since 2012, WRI has contributed to various
initiatives, including the development of GeoRSPO, RSPO’s interactive mapping
platform. WRI’s Southeast Asia Commodities Manager for Global Forest Watch, Anne
Rosenbarger is also currently on the RSPO Board of Governors. Below, Anne reflects
on the latest developments in RSPO’s geospatial data management activities andhow these are contributing to RSPO’s transparency, accountability and monitoring
efforts.

Anne Rosenbarger,
Southeast Asia Commodities
Manager for Global Forest Watch,
World Resources InstituteOver the last few years, we have seen RSPO take some key
steps towards strengthening its monitoring activities andits efforts around transparency and data accountability. Oneof the most notable has been the launch of the GeoRSPO
mapping platform, which was developed in partnership with
WRI and enables RSPO to publicly communicate where its
members are active in a visual and interactive way.
Other positive developments include the onboarding of GIS
expertise within the RSPO Secretariat, which indicates asignificant shift towards establishing an in-house system for
managing spatial data. Such a system will enable RSPO tocollect, analyse, and present information on progress in more
efficient, accurate and meaningful ways. It will also advancethe organisation’s monitoring and evaluation work, which
has historically relied more on data extracted from individual
audit reports, results drawn from academic studies andfindings from external stakeholders.
Beyond GeoRSPO, WRI and RSPO have been working with
PalmTrace to list all mill locations around the world. The
universal mill list will include both certified and conventionalmills that supply RSPO members, as well as identification
numbers that can be cross-referenced across data platforms.
Having non-certified mill locations in the list is a big win interms of traceability, as it gives RSPO a clearer picture of the
supply chains that feed into its members’ refineries.

big challenges will be to find a way to translate the collected
spatial information into follow-up actions to create a direct
link to improvements made on the ground.
While it is not yet certain whether the solution will involve
guidance procedures or protocols linked with consequences,
it is clear that RSPO cannot undertake this challenge alone.
This work should be combined with efforts to engage
members on using the tools and spatial information todevelop specific follow-up activities that are rooted in theirown processes.
Overall, it is extremely positive that RSPO is stepping up andrecognising the role of spatial information management instrengthening accountability. Spatial information is morethan simply a mechanism for identifying whether members
are living up to their commitments, it is an opportunity todemonstrate that RSPO members are taking appropriate
measures, and to communicate this in a clear and evidencebased way.

Under the Assurance Task Force, we have also been working
together with HCVRN to digitise and map HCV and NPP areaboundaries and to establish a system for internal monitoring.
The system will allow both RSPO and HCVRN to set up nearreal-time alerts for tree cover loss and other trends such as
incidences of fire. With the HCV areas mapped, we can more
readily evaluate whether such areas are remaining intact
over time and identify year-to-year trends in deforestation.
We can also proactively monitor overall trends in certified
areas versus non-certified areas.
While we acknowledge the significant progress madein desktop monitoring, it is also important that RSPOinternalises the results from tracking spatial data trends andadjusts its strategies based on what is found. One of the next

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RSPO IMPACT REPORT 2018

Photo Credit: RSPO & Jonathan Perugia

IMPACT ON OUR PLANET“Impacts of RSPO certification on deforestation and fire”
RESEARCH BACKGROUND

2017
Indonesia

Malaysia

Two new studies assessing the impact of RSPO certification on deforestation and fire were published in 2017. The studies,published in PNAS and Earth System Dynamics respectively, utilised remote sensing data to evaluate the impacts of RSPO
certification on deforestation, peatland development and fire use.
The first study, which was conducted by the University of Hawaii, looked at annual remotely sensed metrics of tree cover loss
and fire occurrence to investigate the effect of oil palm sustainability certification on deforestation and fire in Indonesia between
2001 and 2015.
The second study, conducted by the University of Maryland and NASA’s Goddard Space Flight Center used time series satellite
data to evaluate the influence of certification and El Niño on fire-driven forest conversion for oil palm in Malaysia and Indonesia.
The full reports are available at: rspo.org/about/impacts/research-library

KEY FINDINGS
Impact of RSPO certification on reducing deforestation•

RSPO certification reduced deforestation by
33% from a counterfactual of 9.8 to 6.6% per
year. Nevertheless, most plantations contained
little residual forest when they received
certification.

•

Certification had no causal impact on forest
loss in peatlands or active fire detection rates.

•

It was concluded that a broader adoptionof certification in forested regions, strict
requirements on avoiding peat, and routine
monitoring of clearly defined forest cover loss incertified and RSPO member plantations would
be required for greater impacts on reducing
deforestation.

Influence of certification and El Niño on fire-driven
forest conversion•

Interannual variability in fire detections wasstrongly influenced by El Niño.

•

The rate of satellite fire detections or
hotspots was 75% and 66% lower incertified plantations as compared to
non-certified plantations during the 2009 and2015 El Niño events, respectively.

•

The decline of fire activity on certified
plantations, including during drought periods,
highlights the potential for RSPO certification
to safeguard carbon stocks in peatlands andremaining forests, and to support legislation on
banning fires.

Link to RSPO Theory of Change:
Innovating standards& benchmarks

Credible certification,verification & grievance

Ecosystems better
protected
Implemented BMPs

Biodiversity protected
Reduced pollution &GHG emissions

RSPO IMPACT REPORT 201857

IMPACT ON OUR PLANET

LINKING BACK TO OUR THEORY OF CHANGE

Innovating
standards &benchmarks

When implemented, the P&C are designed to drive the following positive environmental outcomes: a
reduction in GHG emissions, the protection and enhancement of ecosystems and biodiversity, theminimisation of resource use, the neutralisation of land degradation, and the broad use of sustainable
land use planning. Through the P&C review, we are working to further strengthen our environmental
requirements.

Our Contribution to the SDGs

RSPO supports the
SDGs•

Principles 5 and 7 of the RSPO P&C 2013 is dedicated toenvironmental responsibility and conservation of natural
resources and biodiversity. It includes requirements on
identification or mitigation of negative environmental impacts,
enhancement of positive impacts, the preservation of rare,threatened or endangered species, and the conservation ofprimary forests and HCV areas.

•

Long-term conservation and reduction in carbon emissions
can only be achieved in partnership with governments,
growers and communities. RSPO continues working withall actors to ensure HCS and HCV areas are identified andmutually recognised, and that alternative approaches that
decouple socio-economic development from deforestation andenvironmental degradation are developed.

•

As of January 2017, the RSPO PalmGHG Calculator and New
Development GHG Calculator were required for calculating
and projecting GHG emissions for RSPO certified producer
member operations. These tools were developed to ensurecompliance with the RSPO P&C 2013 related to identifying,monitoring, minimising and reporting GHG emissions inexisting operations and new developments.

•

Principles 4, 5, 6 and 7 in the P&C 2013 contribute to various
targets set out under SDG 6 for clean water and sanitation.
For example, a water management plan is requiredby growers under Principle 4, which covers: water use
efficiency; wastewater minimisation; safeguarding surface
and groundwater from contamination; providing access toadequate and clean water for workers and local communities;
and ensuring that the use and management of water by theoperation does not result in adverse impacts.

Photo Credit: RSPO & Jonathan Perugia

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IMPACT ON PROSPERITY“Competitive, resilient and sustainable sector”
PROSPERITYSMALLHOLDER INCLUSIVITY AND
PARTICIPATION
For sustainable palm oil to become the norm,
our solutions must be workable and profitable for
operators at every link and level of the supply chain.
Smallholders produce approximately 40% of the
global palm oil supply, which is why supporting thesefarmers to transition towards sustainable production
remains a top priority for RSPO. When certificationand the implementation of responsible practices are
made accessible and workable for smallholders, they
have the potential to significantly reduce the negative
impacts of palm oil cultivation on ecosystems. They
can also improve their livelihoods through increased
yields, income and access to international markets.

RSPO Smallholder Strategy
Our work with smallholders to date has focused on
facilitating certification through the development of
the Guidance for Group Certification of FFB Production,

as well as through the provision of other tools
and resources designed to support small farmers
throughout the process. These efforts have provided
value, but have yet to catalyse the large-scale
inclusion of smallholders needed in the supply chain
to drive real change. Certification is still a significant
challenge for smallholders, who often have limitedaccess to expertise, training and infrastructure.
The RSPO Smallholder Strategy was developed todisrupt this status quo, prompted by the passing ofResolution 6f at the RSPO 12th General Assembly in
November 2015. The final Smallholder Strategy waslaunched in June 2017 following a comprehensive
stakeholder engagement process, and the document
incorporates
guidingprinciples,intermediateoutcomes, outputs and assumptions, as well as animplementation plan. Underpinned by the broader
philosophy of smallholder inclusivity, the overall goalof the strategy is to create a supportive environmentthat empowers smallholders to achieve sustainable
livelihoods.

Smallholder Strategy Objectives

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IMPACT ON PROSPERITY

Photo Credit: RSPO & Jonathan Perugia

Progress on Smallholder Strategy Implementation
A Strategy Workplan outlining RSPO’s next steps relating to Smallholder Strategy implementation was endorsed during thereporting period. Plans and activities include:

Expansion of the
Smallholder Unit within
the RSPO Secretariat:
Increasing staff numbers
to ensure sufficient
capacity for our proposed
smallholder activities.

Completion of the Smallholder Academy13 curriculum andassociated training materials:
Completion of curriculum contents is targeted for December
2018, and the launch of the Smallholder Academy for June/
July 2019. Between July and October 2018, the materials
are being tested in partnership with Solidaridad West Africa,
Universiti Malaysia Sabah and PACOS Trust.

Establishment of baseline information on certified independent smallholder
groups:Compiling information (e.g. productivity per hectare, non-compliance trends)
to understand the current capabilities and needs of independent smallholder
groups.

Socialisation of
simplified tools andguidance documents forsmallholders:Endorsed by the Board ofGovernors in June 2018,
and covering HCV, Socialand Environmental Impact
Assessments (SEIAs)
and GHG assessments,
as well as guidance
on LUCA submission,these documents will be
introduced to targetedgroups (including
Smallholder GroupManagers) in the second
half of 2018.

P&C Review: Development of the RSPO Smallholder Standard
The RSPO Smallholder Strategy mandates RSPO to increase the number of certified smallholders “through the simplification of
the certification approach”. In accordance with this mandate and in line with the RSPO ToC, the Smallholder Interim Group (SHIG),
formed by the RSPO P&C Review Task Force, has developed recommendations for a revised approach. These recommendations
led to the development of a separate standard that is exclusively applicable to independent smallholders. A draft of the RSPO
Smallholder Standard was released for a 60-day public consultation between June and August 2018. This Smallholder Standard
is expected to be completed by mid-2019, and is targeted for adoption by the General Assembly in November 2019.
13

60

The Smallholder Academy is an envisioned online platform that provides smallholders with comprehensive training materials on sustainable oil palm
practices. The Training for Trainers approach is applied through this platform as a method for cascading knowledge to a wider base of smallholders that may
not have direct access to the curriculum and materials.

RSPO IMPACT REPORT 2018

IMPACT ON PROSPERITY

Smallholder Certification 2017–2018
As at 30 June 2018, the total certified area cultivated by independent smallholders under group certification is 21,237 hectares, anincrease of 83% since the last reporting period. Fifteen independent smallholder groups are currently certified, representing 3,491
independent smallholders across Thailand, Malaysia and Indonesia. In contrast to the trends reported in the RSPO Impact Update
2017, Indonesia and Thailand saw the most dramatic growth in independent smallholders’ certified area.

Number of Independent Smallholders under Group Certification(2013–2018)
1,669

1,336
1,151
1,024
810
700

658 658350

349
72 108As at 30 June 2014
As at 30 June 2015

798

501

Indonesia

As at 30 June 2013
1,001

As at 30 June 2016
As at 30 June 2017423 423

As at 30 June 2018

142

Malaysia

Thailand30 June 2018

30 June 2017

55,099139,123

Total smallholders’ RSPO certified area (schemed and independent)

284,320 ha

333,345 ha

Volume of RSPO CSPO produced by smallholders (schemed and independent)

856,546 MT

1,091,749 MT

Number of RSPO smallholders (schemed and independent)

When combining figures for schemed and independent smallholders, we see that the total number of RSPO certified smallholders
decreased by 60% between 30 June 2017 and 30 June 2018. In addition, the total volume of CSPO produced by smallholders has
also decreased by 21%. These trends can partly be explained by the certification expiry of some of RSPO’s producer members with
schemed smallholders. The number of smallholders and CSPO volume are expected to increase again with the renewal of thecertificates in our system.
More positively, specific regions have shown significant progress. In Latin America, the certified area of RSPO smallholders
doubled in Guatemala and tripled in Colombia in the first eight months of 2017. And in a promising sign of independent smallholder
certification in the region, Latin America’s first group of independent smallholders (ASOCOFOR) achieved certification in Ecuador in
July 2017.14 ASOCOFOR supplies fruit to Organic Supply, which sells cooking oil nation-wide in Ecuador and was the first company
to use the RSPO Trademark on a business-to-consumer palm oil product.
Follow the latest smallholder certification trends and data at rspo.org/smallholders/RSPO-certification-by-the-number.

14

Due to the expiry of ASOCOFOR’s licence in PalmTrace prior to the official data extraction date (30 June 2018), ASOCOFOR has not been included in the smallholder
data for this report.

RSPO IMPACT REPORT 2018

61

IMPACT ON PROSPERITY

Perspectives: Tapi-Ipun Sustainable Palm Oil Community Enterprise GroupSukanya Srisubat is an independent smallholder from the Surat
Thani Province in Thailand and a member and a Group Manager of theTapi-Ipun Sustainable Palm Oil Community Enterprise Group. This
organised collective of 253 independent smallholders accounts forapproximately 1,854 hectares of oil palm cultivation. The group raises
awareness about the importance of palm oil quality while addressing
the need to conserve the environment and develop a competitive global
market for smaller scale oil palm producers. An RSPO member since2014, the group has been certified since 2015. Sukanya shares her
experiences and views with us on RSPO and the group certification
process.

Q:

Why did you decide to join Tapi-Ipun Sustainable
Palm Oil Community Enterprise Group?

A:

I have been a member of the Tapi-Ipun Sustainable
Palm Oil Community Enterprise Group since June
2013. I decided to join the group because I could seethat certification would help to improve my livelihood.
Prior to the group’s formation, our members did not
fully understand what RSPO certification was, or what
the benefits would be. But we said, “If we do not know,
we should try to do”. This was the starting point.
Since joining the group, I have gained a lot of experiencefrom working with the other members. I have learned
that supporting each other is very important, and I havedeveloped my skills in oil palm plantation management.

Q:

A:

What has your experience been with the RSPO group
certification process? Have there been any specificbenefits?
At the beginning we thought the certification process
would be very difficult. But after the first year, we saw
things differently. I have experienced a lot of benefits
from following the RSPO certification process. I now keep
records of all activities relating to palm oil production
and plan every activity, both in my plantation and for mywork with our group, in order to become more efficient.
In addition, I have learned that the certification process
can help me to reduce my production costs.
Overall, I am very proud to produce oil palm in asustainable way – which for me means having noconflict with the community and taking the environment
into consideration in the plantation.

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RSPO IMPACT REPORT 2018

Sukanya Srisubat,
Group Manager,
Tapi-Ipun Sustainable
Palm Oil Community
Enterprise GroupQ:

What are some of the challenges of the RSPO
certification process, and is RSPO helping you to
overcome these challenges?

A:

I think the technical processes are the most challenging
aspect of RSPO certification, particularly HCV
assessments, mapping in shape file format, the SEIA
process and the GHG assessments. Many smallholders
still lack the skills to carry out these tasks. However,
RSPO is working to simplify these processes, and I
hope that this will make it easier for smallholders toachieve certification.
Language is another big challenge for smallholders.
Most communications are in English, and it has beendifficult to understand them. Now, RSPO is supporting
us by translating important documents, especially the
RSPO P&C.
In general, RSPO has provided us with a lot of
assistance, and in many different ways. In the first year,
when we underwent the RSPO certification audit, wewere provided with financial support that really helped
us to achieve certification. We have also received a lotof support from the local RSPO representative, who
has helped to simplify, translate and explain RSPO
processes. He organises monthly meetings for groupmanagers where we receive updates about RSPO andon the certification procedures, as well as news about
the sector and the latest RSPO tools. I see real value inthese meetings, and I hope that they will continue.

IMPACT ON PROSPERITYQ:

Have you participated in any smallholder trainings orother activities organised by RSPO?

Q:

Are there any achievements you are particularly proudof that you would like to share?

A:

I always try to participate in training and workshops
organised by RSPO. I have attended events both here
and in Malaysia, including the Smallholders’ Strategy
Workshop, a brainstorming session that explored how
to support smallholders within the certification system.
I could see very positive things emerging from this event,and that RSPO is working very hard to be inclusive towards
smallholders.

A:

As a group manager, I am proud that we have maintained
certification over the past five years, and that ourmembership continues to grow. It is extremely positivethat we can maintain the good relationships formed
within the group and the community. I can also see that
our members are improving their production practices,and FFB prices are rising. It is very rewarding to see ourmembers increase both their yields and their incomes.
We are proud to be producing sustainable palm oil and tobe part of the RSPO family.

Q:

Moving forward, what do you hope to see from RSPO in
relation to their work with smallholders?

A:

In the future, I would like to see more tools and processes
that are designed with our needs in mind as we work toachieve and maintain certification. I also encourage more
support from other areas of the supply chain. This would
help to increase the number of smallholders in the RSPO
system.

RSPO also sponsored our group to attend the Annual
Roundtable Conference on Sustainable Palm Oil. This wasa good opportunity to understand the world of sustainablepalm oil and receive updates on RSPO and market
trends. RSPO was very supportive towards smallholders
at the meeting, ensuring that we could understand andparticipate. It also gave me a chance to see how big the
RSPO family is and meet many people in the sector.

RSPO Smallholder Support Fund
The RSPO Smallholder Support Fund (RSSF) is funded from
10% of the revenue generated from the trade of CSPO. Since
2013, this funding has been used to help smallholders cover thecosts of training, project management, certification and audit
costs, as well as the tools and techniques needed to support
smallholder development.
To date, the RSSF has provided financial support for 32
smallholder projects in 12 countries (equivalent to RM 12.4
million or USD 3 million). Nearly 26,000 individual smallholders
covering about 156,000 hectares of farmland have been
impacted. During the current reporting period, five projects
have been granted funding through the RSSF. This includes thefirst ever RSSF project in Mexico, where funding will be sharedwith over 157 smallholders seeking RSPO certification.
Moving forward, we plan to reallocate some of the funding
distributed through the RSSF to support the implementationof the RSPO Smallholder Strategy. Using this redistributed
funding, RSPO will continue to support smallholders through thelens of the strategy’s main focus areas: helping smallholders to
improve their livelihoods, simplifying the certification approachfor smallholders, and increasing smallholder access to theglobal market. Consequently, only one-off Audit Cost15 projects
will continue to be funded by the RSSF, as this aligns with the
Smallholder Strategy’s second key objective—to increase thenumber of smallholders in the RSPO system.

15

UN Environment Project and RSPO Smallscale Funding Agreement
In 2017, a small-scale funding agreement (SSFA) was signed
between the United Nations Environment Project (UNEnvironment) and RSPO to improve smallholder livelihoods andencourage the sustainable production of oil palm products. Thisagreement makes provision for a fund totalling USD 203,294(USD 199,611 from the 10YFP Trust Fund administered by UN
Environment; USD 83,683 from RSPO) to be distributed between
smallholder farmers in the regions of Sabah in East Malaysia,
and Seruyan in Central Kalimantan, over a period of two years.
The fund will target essential capacity building activities tosupport smallholders in both regions. These include thetrialling of four intervention activities in 20 villages in Sabah,and the development of an agricultural facility in Seruyan thatwill provide direct support and training for more than 1,000
smallholders.
The project is anticipated to improve the livelihoods of morethan 50,000 schemed and independent smallholders in Sabah,and over 5,300 independent smallholders in Seruyan.

RSPO Smallholder Engagement Platform
Launched in November 2017, the RSPO Smallholder
Engagement Platform (RSEP) was developed to bridge the gap
between palm oil smallholders and potential project partners,
to enable more smallholders to engage in sustainable supply
chains and provide smallholders all over the world access toadditional resources and support. The platform is accessible atwww.rsep.rspo.org.

There are three types of projects where RSSF funding currently applies: Smallholder Certification Projects, Smallholder Certification Audit Costs (one-off only)
and Smallholder Impact Projects. For more information on the criteria for each type, please see rspo.org/smallholders/rspo-smallholders-support-fund.

RSPO IMPACT REPORT 2018

63

IMPACT ON PROSPERITY“On the profitability of sustainability certification: An analysis among
Indonesian palm oil smallholders”
RESEARCH BACKGROUND

2016
Indonesia
The research was carried out by Maastricht University and Bogor Agricultural University. Published in the Journal of
Economics and Sustainable Development in 2016, the study used qualitative and quantitative collection and analysis
methods to find out:••

If certification can still be profitable for Indonesian palm oil smallholders when covering their own certification costs.
The amount of premium fees needed to make certification profitable.

The full report is available at: rspo.org/about/impacts/research-library

KEY FINDINGS
Certification was found to be profitable for different types of Indonesian palm oil
smallholders, depending on the smallholders’ pre-conditions:••

In the self-funded scenario, certification is not profitable for schemed smallholders
and only remains profitable for independent smallholders when they continue toreceive premium prices (incentives for better quality FFB). If premium prices are
removed, independent smallholders may need unrealistically high premium fees
(price from selling RSPO certified produce) to generate profits.
The organisation of farmers around mill companies contributes positively to profit.

Certified Schemed Smallholders

34%

89%

higher profitability
than non-certified schemed
smallholders as a result of:••Certified Independent Smallholders

higher profitability than non-certified
independent smallholders as a result of:••higher productivity (+32%)
lower productivity costs (-9%)••

higher productivity (+42%)
higher selling price (bypass
middlemen)premium pricepremium fee

RSPO
CERTIFIED

Link to RSPO Theory of Change:

Participatory
approach forsmallholders

64

RSPO IMPACT REPORT 2018

Smallholder
participation

Productivity
optimised

Sustainable &resilient businesses

Implemented
BMPs

Incentives

Inclusive accessto benefits

IMPACT ON PROSPERITYENGAGING MARKETS & GENERATING
DEMAND

Annual Growth in CSPO Sales

There are clear and demonstrable benefits for RSPO certified
growers and for buyers that source sustainably produced palmoil. However, market commitment and uptake of CSPO willremain the defining factor when it comes to incentivising the
adoption of the RSPO P&C in the near to medium term. Thisis critical in the case of emerging markets where most of theworld’s palm oil is consumed.

Demand and uptake of CSPO continued to grow between 2016
and 2017 (calendar years), with overall sales increasing by 9%
to 6,155,983 tonnes as at December 2017.
Following the trends identified in the RSPO Impact Update2017 (see page 21), physical CSPO sales also increased by
23%, while sales of palm oil covered by the Book and Claimsystem decreased by 16%. These continuing trends indicate anincreasing interest in sourcing physical CSPO.

Annual Sales of CSPO (MT) (2008–2017)
2,755,904

1,551,017
984,138

4,452
0
2008

98,044

2,962,256

2,495,277

831,010438,515

4,511,050
2,432,258 3,426,790 3,674,550 1,644,933
1,958,181
2,917,408

1,659,516

842,619

245,813
2009

2010

2011

2012

CSPO Sales through Book and Claim

2013

2014

2015

2016

2017

CSPO Sales through IP, SG, MB

Note to data: All figures are based on full calendar year data (1 January–31 December).

RSPO PalmTrace Webpage
PalmTrace is RSPO’s traceability system for certified oil palm products.
Certified members use PalmTrace to register their physical sales andprocessing activities – from mill level to refineries – under the Identity
Preserved, Segregated and Mass Balance supply chain models. PalmTracealso supports RSPO’s Book and Claim model by enabling the trade of RSPO
Credits.
In 2018, RSPO launched an enhanced PalmTrace webpage on the RSPO
website. The page has been improved to provide market information on all
types of RSPO Credits, market trends, and Credits that have been claimed bymembers.

RSPO IMPACT REPORT 2018

65

IMPACT ON PROSPERITYNORTH AMERICA

OUTREACH
IN MARKETSAROUNDTHE GLOBE

COMMITMENT
North American Sustainable Palm Oil Network(NASPON): 100% CSPO uptake in markets in North
America
PROGRESSRSPO continues toengage in regionallyfocused market
outreach efforts
with the goal of
ensuring all major
consumption
markets source
significant volumesof CSPO.

LATIN AMERICA
PROGRESS••66

RSPO members: 113
Products with RSPO Trademark: 1

RSPO IMPACT REPORT 2018••

RSPO members: 506
Products with RSPO Trademark: 2

IMPACT ON PROSPERITY

CHINA

INDIA

COMMITMENTCOMMITMENT

10% CSPO uptake by 2020

30% CSPO uptake by 2020

PROGRESSPROGRESS••••

Physical uptake of CSPO: 1.5% as at 30 June 2018
RSPO members: 87
Products with RSPO Trademark: 2•

Physical uptake of CSPO:
1% as at 30 June 2018
RSPO members: 49

EUROPE

SOUTHEAST ASIA

COMMITMENTCOMMITMENT

Individually, and together under the European Palm Oil
Alliance and Amsterdam Declaration, national alliances
have a commitment to use 100% CSPO.

•PROGRESS••••

Physical uptake of CSPO: 3,000,381 MT (79% of
EU food consumption) in 2017
RSPO Credits: 371,384 MT in 2017
RSPO members: 2,355
Products with RSPO Trademark: 23•

Indonesia: RSPO targets 50% of CPO
consumed in Indonesia to be RSPO
certified by 2020
Southeast Asia Sustainable
Palm Oil (SASPO): 100% physical CSPO
by members

PROGRESS••RSPO members: 403
Products with RSPO Trademark: 12

RSPO IMPACT REPORT 2018

67

IMPACT ON PROSPERITYEUROPEGERMANY
Forum Nachhaltiges
PalmölNORWAY
Norwegian Initiative for
Sustainable Palm Oil

NETHERLANDS
The Dutch Task Forcefor Sustainable Palm
Oil

SWEDEN
Livsmedelsföretagen Swedish Food Federation

UNITED KINGDOMUK Roundtable forSourcing Sustainable
Palm Oil

DENMARK
Erhvervsinitiativ forbæredygtig palmeolie

BELGIUM
Belgische Alliantie
voor Duurzame
Palmolie

POLAND2019 Goal for Polish
Industry Commitment

FRANCE
L’Alliance Française
pour une Huile dePalme Durable

ITALY
Unione Italiana
per l’Olio di Palma
Sostenibile

SPAIN
La Fundación
Española del Aceite
de Palma Sostenible

RSPO Regional Outreach Highlights
JUNE 2018

OCTOBER 2017•

RSPO presented at the UK Sustainable Palm Oil
Summit at the Palace of Westminster on 13 June which
was aimed at the UK foodservice and animal feedindustries.

RSPO hosted a booth at the SEPAWA Congress in Berlin,
Germany. The SEPAWA Congress is focused on thedetergent/cleanser, cosmetics and perfumery industry inEurope.

•On 24–25 June 2018, the European team hosted thesixth European Roundtable in Paris, France, with over
400 delegates in attendance.

SEPTEMBER 2017

MAY 2018
With ambassadors from the European Palm Oil Alliance(EPOA) and BASF, RSPO hosted its first Outreach &Engagement Roadshow in Poland.

68

RSPO IMPACT REPORT 2018

For the first time, RSPO held a workshop event in Barcelona,
Spain, where we provided guidance to companies on thesustainable sourcing of palm (kernel) oil products.

IMPACT ON PROSPERITYCHINA & INDIARSPO Regional Outreach Highlights
MARCH 2018
RSPO and CFNA signed a Memorandum of Understanding(MoU) in Beijing. The MoU established a five-year strategic
partnership to promote various programmes in the sustainablepalm oil field.
JULY 2017

CHINA
China Sustainable
Palm Oil Alliance(CSPOA)

INDIA•“Say Yes to Sustainable Palm Oil” campaign was held in
Beijing. The event brought together 156 supermarkets,department and appliance stores.

•

The 2017 Sustainable Consumption Week was held by
RSPO in conjunction with several other partners.

RSPO Regional Outreach Highlights
JUNE 2018
3F Industries Limited, one of India’s prominent multinational
corporations in the edible oils import and production sector,
announced their commitment towards the sustainable palm
oil movement.
FEBRUARY 2018
RSPO received an award for “Excellence for Promoting
Sustainability in the Palm Oil Sector” in New Delhi, India.

RSPO IMPACT REPORT 2018

69

IMPACT ON PROSPERITY

SOUTHEAST ASIA

MALAYSIA
Sustainable Palm Oil
Community (SPOCMalaysia)
SOUTHEAST ASIA
Southeast Asia
Sustainable Palm Oil(SASPO)RSPO Regional Outreach Highlights
FEBRUARY 2018
RSPO co-hosted a roadshow event with SASPO.
DECEMBER 2017
RSPO and Landscape Indonesia released a report titled Managing Palm Oil Risks: A brief for financiers, highlighting theincreasing reputational, regulatory, and financial risks Indonesian financial institutions are facing by funding unsustainablepalm oil producers.
OCTOBER 2017
RSPO sponsored the Youth Leadership in SDGs forum held in conjunction with the 10th Kuala Lumpur Eco Film Festival(KLEFF).
AUGUST 2017
Thailand’s first roadshow event was held in Surat Thani.

70

RSPO IMPACT REPORT 2018

IMPACT ON PROSPERITYNORTH & LATIN AMERICARSPO Regional Outreach Highlights
DECEMBER 2017
Following RT15, RSPO’s members in North America formed
NASPON, to work collaboratively in finding industrywide
solutions to secure CSPO in their products and to ensure
respect for human and labour rights, local communities andbiodiversity throughout the palm oil supply chain. NASPON
brings together associations, civil society organisations,consumer goods manufacturers, retailers and palm oil
traders and producers committed to increasing use of CSPO
and CSPK in the region.

NORTH AMERICA
North American
Sustainable Palm Oil
Network (NASPON)

COLOMBIA
Zero Deforestation
Commitment for
Colombian Palm Oil

RSPO Regional Outreach Highlights
JUNE 2018
RSPO held the 7th Latin American Conference in Cali, Colombia,
which received over 400 participants from 20+ countries.
JANUARY–JUNE 2018

ECUADOR
Steering Committee
for Sustainable
Palm Oil in Ecuador(CISPS)RSPO has hosted 16 workshops and training sessions in theregion covering various topics, including RaCP, PalmGHG,
HCV, the jurisdictional approach to certification, FPIC, P&C
review and training for certification bodies.

RSPO IMPACT REPORT 2018

71

IMPACT ON PROSPERITY

Launching our five-year collaboration with
WAZA
Increasing market uptake of sustainable palm oil was a
key objective in a Memorandum of Understanding (MoU)
signed by RSPO and the World Association of Zoos andAquariums (WAZA) in October 2017. The MoU outlines ajoint commitment to work together towards the sharedobjective of making sustainable palm oil the norm.
Attracting over 700 million nature-loving visitors each year,
zoos and aquariums provide an effective platform to educate
consumers about the devastating effects of unsustainablepalm oil production. In this context, WAZA members can bea powerful voice for raising awareness about the benefits ofsustainable palm oil production and influencing consumer
decisions.

Through the MoU, WAZA has committed to encouraging its
members to promote awareness on CSPO production andconsumption among the general public. The association
has also agreed to participate in the RSPO Biodiversity andHigh Conservation Value Working Group (BHCV WG), where
it will advise on potential conservation projects and provide
specialised knowledge.
WAZA aims to have at least 50% of its members committed
to sustainable palm oil practices and RSPO certified by
2023. RSPO members will meanwhile be encouraged toincrease their consumption of CSPO.

RSPO Trademark
The RSPO Trademark is a globally recognised ecolabel that signals the use of RSPO certified sustainable palm oil in a product. Its
purpose is to empower consumers to make ethical decisions.
As at 30 June 2018, RSPO Trademark licences are held by 707 supply chain certified members across 55 countries. This represents
a 27% increase in licence holders since the last reporting period. During the reporting period, five new countries have been added
to the Trademark licence list: Côte d’Ivoire, Croatia, Ecuador, Jordan and South Africa.

Europe is the largest market for RSPO certified products and over 70% of all RSPO Trademark licences are held in European
countries. Germany leads the world in terms of total number of licences held by a significant amount. Outside Europe, the countries
with the most RSPO Trademark licences are the United States (US) and Malaysia.

72

RSPO IMPACT REPORT 2018

IMPACT ON PROSPERITY

707

+70%

supply chain certified members hold
RSPO Trademark licences in 55 countries
globally, representing a growth of 27%.

151

of total RSPO Trademark licences are heldin European countries. Europe remains thelargest market for RSPO certified products.

120

new RSPO Trademark licenceswere issued in this reporting
period. (144 issued in the lastreporting period)

5
new markets where RSPORSPO Trademark licences are held inGermany. (17% of the global market
for CSPO)

Trademark licenced products
are being sold.

Trademark Licences by Country(as at 30 June 2018)

198

120

47

46

42

41

ia
Au

st
r

n
ai
Sp

a
M

al

ay

si

ly
Ita

Be

lg

iu

m

s
nd
rla

et

he

21

N

d
ite
Un

ng
Ki
d

ite
Un

St
at
es

m
do

ce
Fr
an

Ge

rm

an

y

30

r

50

he

55

Ot

57

Notes to data:• Trademark licence data reflects data from supply chain certified members only.
• Number of licences is equivalent to number of companies using the RSPO Trademark.

RSPO engages in activities and campaigns to strengthen awareness of the RSPO Trademark, both along the palm oil supply chain
and among consumers worldwide. Understanding the potential for growth in markets outside of Europe, we have focused much of
our effort in North America and in Asia. Collectively, Asian countries achieved a 28% growth in Trademark licences over the courseof the reporting period, while the number of licences in the US increased by 52%.

RSPO Trademark App

Available on iOS and Android

Launched in 2016, the RSPO Trademark App is a free crowdsourcing
application that enables consumers to find, shop and upload RSPO
certified products bearing the RSPO Trademark. More than 2,000
consumers used the application during the reporting period.
The free RSPO Trademark App is available for iOS and Android.
See how it works at: www.youtube.com/watch?v=MXoQeyEDn44.

RSPO IMPACT REPORT 2018

73

IMPACT ON PROSPERITY

LINKING BACK TO OUR THEORY OF CHANGE

Participatory
approach forsmallholders

Generating
demand,commmitments& uptake

We aim to create a supportive environment and model that is inclusive of smallholders, and whichempowers them to achieve sustainable livelihoods. By supporting smallholders to become RSPO
certified, and to engage in sustainable production practices, there is a potential to significantly reduce
the negative impacts of palm oil cultivation on ecosystems.

Our market outreach activities support the progress of national and regional commitments on sourcing
and consuming sustainable palm oil, which leads to an increase in the overall uptake of CSPO. By
generating demand, we are helping to create incentives for sustainable palm oil production. Throughincreased promotion and awareness about the benefits of CSPO, as well as on the RSPO Trademark,we are also enabling consumers and markets to distinguish between products that are sustainable andproducts that are not.

Our Contribution to the SDGs

RSPO supports the
SDGs•

RSPO supports smallholders by providing a framework and tools through which they can engage in sustainability practices
and obtain RSPO certification. The implementation of sustainable farming practices creates an opportunity to gain access tomarkets, improve farm management and increase yields, thereby raising household incomes.

•

By engaging in regional outreach activities, campaigns and initiatives and utilising our global networks, RSPO is helping todrive consumer, government and industry awareness and demand for sustainably produced palm oil.

•

We also support national initiatives and commitments by acting as a platform for knowledge sharing. Through our regional
offices, we engage with policymakers and industry leaders on regional targets for CSPO uptake.

•

RSPO has strengthened engagement with consumer groups through a number of partnerships and activities. For example, theMoU between RSPO and WAZA, which focuses on cooperation and understanding to further the shared goals and objectives
towards the transformation of markets to make sustainable palm oil the norm.

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RSPO IMPACT REPORT 2018

BASE DATA& NOTES

Unless otherwise stated, all figures and results presented in the body of this report are based on data taken as
at 30 June 2018 or extracted from the RSPO’s official reporting period: 1 July 2017–30 June 2018. This timeframe
does not necessarily apply to data from other sources (e.g. independent research studies commissioned by the
RSPO), which may have a calendar year basis (e.g. 1 January 2016–31 December 2017).
Indicator

Breakdown

Unit

2018

2017

2016

2015

2014

2013

Number ofMembers

3,920

3,422

2,941

2,282

1,631

1,178

Germany

451

403

372

279

208

147

Membership
Total

By country

United States

446

324

200

138

89

70

United Kingdom

432

412

378

330

200

131

Netherlands

228

212

191

146

119

92

Italy

200

179

158

113

52

29

FranceBelgium

Number ofMembers

146

143

127

106

86

131

106

89

62

44

Malaysia

139

137

128

109

117

95

Spain

138

114

NA

NA

NA

NA

Australia

132

124

114

80

53

0

Indonesia
Other
Ordinary
By membership type

161
149

Associate
Affiliate

Number ofMembers

123

115

115

103

109

88

1,444

1,239

1,036

768

516

396

1,693

1,551

1,373

1,151

991

829

2,129

1,776

1,458

1,032

540

309

98

95

110

99

100

103

Certified, production, uptake

Area

Annual certified
production volume
SupplySales

UptakeProduction Area ha

2,350,753

2,451,573

2,187,784

2,768,149

2,509,853

NA

Certified Areaha

3,137,397

3,236,429

2,830,355

3,300,653

2,973,902

NA

HCV Areaha262,974

189,777

157,115

144,164

NA

NA

CSPO

MT

13,619,600 11,710,919 10,850,196 12,623,139 11,125,902

NA

CSPK

MT

3,135,973

NA

2,683,835

2,444,103

2,883,200

2,556,432

CSPO

MT

5,997,272 11,860,079* 12,062,293 12,130,775 10,998,913

8,735,843

CSPK

MT

1,229,023

2,713,154*

2,765,223

2,780,291

2,531,369

2,030,746

CSPO Sales
through IP, SG,MBMT

2,230,452

4,511,050*

3,674,550

2,755,904

2,432,258

1,551,017

CSPO Sales
through Book
and ClaimMT844,194

1,644,933*

1,958,181

3,426,790

2,917,408

2,962,256

Total CSPO
Sales

MT

3,074,646

6,155,983*

5,632,731

6,182,694

5,349,666

4,513,273

CSPO Sales/
Supply%51.3%

51.9%*

46.7%

51%

48.6%

51.7%

Notes to data:• Membership, Area and Annual Certified Production Volume data for 2013–2018 is taken as at 30 June for each respective year.
• Final data for Supply, Sales and Uptake can only be calculated at year-end (31 December). Therefore, data for 2013–2017 is inclusive until
31 December, and data presented for 2018 is only inclusive until 30 June 2018.
• All figures presented under “Certified, production, uptake” are inclusive of schemed and independent smallholders certified under group
certification schemes.
• Figures marked with an asterisk have been updated for the 2018 Impact Report to be inclusive up to 31 December of each respective
year, and may therefore differ from corresponding figures presented in the RSPO Impact Update 2017.

RSPO IMPACT REPORT 201875

BASE DATA & NOTES

Indicator

Breakdown

Unit

2018

2017

2016

2015

2014

2013

ha

18,85817,93934,729*332,372

464,891NA

New Planting Procedure
Indonesia

NPP area(by country)

Liberia

ha

-

-

-

48,47053,385NA

Cameroon

ha

-

-

-

-

-

NA

Papua New Guinea

ha

275

972

2,591

-

2,928

NA

Malaysia

ha

-

496

2,823

3,558

-

NA

Mexico

ha

-

1,019

-

-

-

NA

Gabon

ha

-

72,930-23,78031,800NA

Guatemala

ha

1,730

496

-

-

691

NA

Cambodia

ha

-

-

-

-

2,432

NA

Nigeriaha

14,436

2,368

-

-

-

NA

Costa Rica

ha

-

-

-

-

2,532

NA

Togo

ha

-

4,144

-

-

-

NA

Ghana

ha

-

-

-

2,240

-

NA

Brazil

ha

-

-

-

7,448

-

NA

Solomon Islands

ha

2,677

-

-

-

-

NA

Sierra Leoneha

10,000

-

-

-

-

NA

Notes to data:• NPP areas distributed over country and year. Figures are based on RSPO’s official reporting period (1 July – 30 June).
• Figures marked with an asterisk have been corrected in this report to include one submission for Indonesia, previously excluded.

Indicator

Breakdown

NCLC area (ha)FCL area (ha)Remediation and Compensation Procedure

BrazilNCLC and FCL area(by country)

2018

2017

2018

2017

2,751

51

846

39

Cameroon

8,281

-

4,351

-

Colombia

39,62921,386

2,436

2,015

Costa Rica

173

387

3

3

Côte d’Ivoire

2,165

1,887

786

0

Dominican Republic

7,447

773

74

3

Ecuador15,542

7,417

2,949

592

Ghana

6,103

2,432

685

168

Guatemala23,08614,991

927

406

Honduras

8,437

8,703

308

183

Indonesia

684,502581,924

87,58555,628

Malaysia

62,551

61,414

11,596

9,048

Mexico

2,694

-

236

-

Nigeria

2,048

2,048

8

88

Papua New Guinea

7,372

-

799

-

Peru

20,431

-

2,998

-

São Tomé and Príncipe

1,331

-

483

-

Sierra Leone

14,199-331-

Notes to data:• NCLC: Non-compliant land clearance or land clearance without prior HCV assessment since November 2005.
• FCL: Final Conservation Liability.
• All figures in the above table are taken as at 30 June of each respective year.

76

RSPO IMPACT REPORT 2018

BASE DATA & NOTES

Indicator

Breakdown

Unit

2018

2017

2016

2015

2014

2013

Total complaints received(cumulative)

Number ofComplaints

110

99

79

62

47

45

Total complaints closed(cumulative)

Number ofComplaints

64

60

52

40

30

18

Total complaints remaining open at Number ofyear-end (cumulative)
Complaints

46

39

27

22

17

27

Complaints received by year

Number ofComplaints

11

20

17

15

2

19

Complaints closed by year

Number ofComplaints

4

8

12

10

12

13

Complaints

Complaints
success
criteria

Complaints closed

% age

8.7%

20.5%

44.4%

45.5%

70.6%

48.2%

Average time for resolving
complaints (closed cases)

Days

33

73

197

203

0

450.5

Average time complaints remain
open (active cases)

Days

86.8

396.6

626.4

1,008

1,317

0

Notes to data:• The data collection system for complaints has been reviewed and restructured during the reporting period. Complaints data in this report therefore differs fromthe data presented in previous Impact Reports and Impact Updates.
• Complaints data for 2013–2017 is representative of calendar year (1 Jan–31 Dec). Figures for 2018 were taken as at 30 June 2018.

Indicator

Breakdown

Unit

2018

2017

2016

2015

2014

2013

Number oflicences

707

556

412

300

181

NA

TrademarkTotal trademark

Bystakeholder
group

Consumer Goods Manufacturers

271

220

175

128

79

NA

Processors & Traders

142

109

86

77

51

NA

259

200

135

77

36

NA

Supply Chain Associates
Supply Chain Group Managers

Number oflicences

2

2

NA

NA

NA

NA

Retailers

7

7

7

9

9

NA

Growers

26

18

9

7

6

NA

Germany

120

91

68

54

40

NA

France

57

47

42

27

20

NA

United Kingdom

55

48

39

24

17

NA

United States

50

33

20

24

16

NA

47

44

35

24

15

NA

46

39

32

22

11

NA

Italy

42

34

27

-

-

NA

Malaysia

41

32

25

28

21

NA

Spain

30

27

19

-

-

NA

Austria

21

15

-

-

-

NA

Others

198

146

94

58

27

NA

82

139*

163

111

98

51

Netherlands
By country

By yearBelgium

Number oflicences

Number oflicences

Notes to data:• Trademark licence data ‘By year’ for 2012–2017 is representative of calendar year (1 Jan–31 Dec). Data presented for 2018 represents half-year data
(1 Jan–30 June 2018).
• Trademark licence data reflects data from supply chain certified members only.
• Figures marked with an asterisk have been updated for this report to be inclusive up to 31 December 2017.

RSPO IMPACT REPORT 201877

BASE DATA & NOTES

Indicator

Total
CertifiedArea (ha)Total
Production
Area (ha)Total CSPO
(MT)

Total CSPK
(MT)

Total FFB
Produced(MT)

Monthly
CSPO Supply(MT)

Monthly
CSPK Supply(MT)

3,155,615

2,369,068

13,564,810

3,123,896

50,132,843

917,691

212,169

21,237

18,94954,79012,077

291,013

4,566

1,006

Total CSPO
(MT)

Total CSPK
(MT)

Total FFB
Produced(MT)

Monthly
CSPO Supply(MT)

Monthly
CSPK Supply(MT)

P&C certification
Mills and Supply Base(s)Group Certification for Smallholders (SHG)

Note to data: All figures in the above table are taken as at 30 June 2018.

Indicator

Total
CertifiedArea (ha)Total
Production
Area (ha)Countries with P&C certification
Brazil176,50292,444

162,740

32,5491,580,294

13,562

2,712

Costa Rica

39,45537,263

159,804

36,109728,766

13,3173,009

Cambodia

20,58014,71836,868

10,322

187,146

3,072

624

Colombia

49,38936,722

185,778

37,731

697,871

12,072

2,332

Ecuador

10,0306,419

15,0001,386

94,824

1,250

116

Gabon

55,385

17,69940,2477,350

172,399

3,354

612

Ghana

12,68010,89852,26811,808140,357

2,487

595

Guatemala30,91230,333

159,660

27,729821,285

13,3052,311

Honduras

20,83519,92590,077

20,900268,278

7,506

1,742

Indonesia

1,550,466

1,170,780

7,482,388

1,703,074

25,364,697

477,380

109,412

Côte d’Ivoire

36,75935,17073,512

11,215

217,381

6,049

893

Madagascar

2,234

1,087

999

65

6,336

83

5

Malaysia

950,588734,828

4,456,110

1,056,295

16,128,774

298,151

71,373

Papua New Guinea

176,801

140,666

568,353

146,397

3,340,406

59,353

14,686

Solomon Islands

9,026

7,475

35,3398,565

149,743

2,945

714

Thailand

13,973

12,64145,667

12,400234,286

3,806

1,033

Note to data: All figures in the above table exclude data for independent smallholders certified under group certification but are inclusive of schemed

smallholders certified under group certification. All figures are taken as at 30 June 2018.

78

RSPO IMPACT REPORT 2018

GLOSSARY

Accreditation body
Organisation that undertakes the accreditation ofcertification bodies (CBs).

Hectares (ha)A unit of measurement equivalent to 10,000 square
metres, or 100m x 100m.

Accreditation Services International (ASI)
One of the world’s leading accreditation bodies forsustainability standards systems, including RSPO.
Founded in 2006, ASI is a full member of the ISEAL
Alliance.

High Conservation Value (HCV)The concept of HCV forest was first developed by the Forest
Stewardship Council (FSC) in 1999 as their 9th Principle.
The FSC defined HCV forest as forest of outstanding
and critical importance due to its environmental, socioeconomic, cultural, biodiversity and landscape value.

Affiliate members
RSPO membership category consisting of organisations
that are not directly involved in the palm oil supply chain,but have expressed interest in RSPO’s objectives andactivities. Membership extends to academia, researchand development organisations, donors and sponsors.
Affiliate members may attend the annual General
Assembly as observers.
Annual Communication of Progress (ACOP)
Reports submitted by RSPO members to gauge theirprogress towards 100% RSPO certified sustainablepalm oil. These reports are mandatory for Ordinary andAffiliate members, and are submitted each year.
Best Management Practices (BMPs)
Practical guidelines to enhance oil palm management.
Certification body (CB)
Organisation that provides third-party auditing andcertification services related to a product, process or
system, and which can issue a certificate of compliance.
Certified Sustainable Palm Oil (CSPO)
Palm oil that has been grown on a plantation that has
been managed and certified in accordance with the RSPO
Principles & Criteria.
Compliance assessment
In-field assessment conducted by an accreditation bodythat serves to evaluate a certificate holder typically a few
months after a CB has completed its latest assessmentof the certificate holder.
Crude palm oil (CPO)
A type of unrefined vegetable oil obtained from the fruitof the oil palm tree.
Final Conservation Liability (FCL)
Compensation liabilities incurred by RSPO members as
a result of clearance without prior HCV assessment sinceNovember 2005. FCL is expressed in hectares.

High Carbon Stock (HCS) forest
Forests that are important to local communities or thathave high carbon or biodiversity values.
Hotspot
A small area with a relatively high temperature incomparison to its surroundings.
Human Rights Defenders (HRDs)
Individuals, groups and associations who promote
and protect universally recognised human rights andcontribute to the effective elimination of all forms of
violations of human rights and fundamental freedoms
of individuals and peoples. This includes Environmental
Human Rights Defenders, whistleblowers, complainants
and community spokespersons. The definition does
not include those individuals who commit or propagate
violence.
Identity Preserved (IP)The Identity Preserved supply chain model assures thatRSPO certified palm oil is kept separate from oil that is
not RSPO certified. This oil can be physically traced backto its plantation of origin.
International Labour Organization (ILO)
United Nations agency dealing with labour issues,particularly international labour standards, social
protection, and work opportunities for all.
ISEAL Alliance
Global membership association for credible sustainability
standards, which work together to improve the impact andeffectiveness of current and potential future members.
Jurisdictional approach to certification
In the context of sustainable palm oil, the jurisdictional
approach seeks to align interests and coordinate actions
among governments, businesses, local communities,
and NGOs toward shared conservation, supply chain
sustainability, and green development goals.

Free, Prior and Informed Consent (FPIC)A principle that a community has the right to give or
withhold its consent to proposed projects that may affectthe lands they customarily own, occupy or otherwise use.

Land Use Change Analysis (LUCA)
Assessment determining changes to vegetation coverand land use over a given timeframe.

Fresh Fruit Bunch (FFB)
Bunch harvested from the oil palm tree. Each bunch canweigh from 5 to 50 kilogrammes and can contain 1,500 or
more individual fruits.

Mass Balance (MB)Supply chain model that allows certified claims to betransferred from one oil palm product to another, either
through physical blending or administratively understrictly controlled circumstances.

Greenhouse gas (GHG)
Term for gases that trap heat within the atmosphere.
The primary greenhouse gases are water vapour, carbon
dioxide, methane, nitrous oxide, and ozone.

Metric ton (MT)A unit of mass equivalent to 1,000 kilogrammes.

RSPO IMPACT REPORT 2018

79

GLOSSARYNew Planting Procedure (NPP)
Provides guidance on how and under what conditions new oil palm
plantings should be carried out.

RSPO Complaints Panel
An independent panel comprising RSPO members constituted toreceive and process complaints.

Oil palm
A species of palm (Elaeis guineensis) and the principal sourceof palm oil. It is native to west and southwest Africa, but is now
cultivated in over 26 countries. Ideal growing conditions occur up to
10 degrees either side of the equator.

RSPO Credits / Book and Claim
Model where the supply chain is not monitored for the presenceof sustainable palm oil. Manufacturers and retailers support the
production of RSPO certified sustainable oil palm products throughthe purchase of Credits from RSPO certified growers, crushers andindependent smallholders.

Ordinary members
RSPO membership category consisting of organisations that have
either direct involvement, or have activities around, the palm
oil supply chain. Only ordinary members are allowed to submit
resolutions and vote at the annual General Assembly.

RSPO Principles & Criteria (P&C)
Guidelines on how palm oil companies and growers should produce
palm oil sustainably. It forms the basis of all company assessments
for certification and is reviewed every five years.

PalmGHG
A calculator developed by the RSPO Greenhouse Gas Working
Group (2010–2011) and further refined and improved by the RSPOEmission Reduction Working Group to estimate and monitor net
GHG emissions from current estate and mill operations.

RSPO P&C Review Task Force
Task Force designated to deliberate on the structure and content
of the revision of the RSPO Standard. The Task Force is chaired by
RSPO's Chief Executive Officer and consists of palm oil growers,
supply chain and investor representatives and NGOs.

Palm Kernel Oil (PKO)
Oil extracted from the kernel or core of the palm fruit.

RSPO Smallholder Support Fund (RSSF)
A fund established by the RSPO to help smallholders securesustainable palm oil certification while minimising costs. The RSSF
is funded from 10% of income generated through the trading of
CSPO.

Palm oil
Edible oil extracted from the fruit of the oil palm. Palm oil is oneof the few highly saturated vegetable fats. It remains semi-solid atroom temperature and is suitable for a wide variety of applications.
Palm oil is an ingredient in a large number of products, including
margarine, baked goods, chocolate, ice cream, soaps andcosmetics. It is also used as fuel for cars and power plants.
Palm Oil Mill Effluent (POME)
A wastewater product generated from palm oil milling activities.
PalmTrace
RSPO’s traceability system for certified oil palm products. Certified
members use PalmTrace to register their physical sales andprocessing activities – from mill level to refineries – under the IP,
SG and MB supply chain models. PalmTrace also supports RSPO’s
Book and Claim model by enabling the trade of RSPO Credits.
Peat
Organic soils with 65% or more organic matter and a depth of 50
cm or more.15
Remediation and Compensation Procedure (RaCP)
Procedure whereby RSPO members are required to remediate
and compensate for land clearance without prior HCV assessment
since November 2005.
RSPO Board of Governors (BoG)
RSPO management body comprised of 16 RSPO members,
representing each of the seven RSPO membership categories anddesignated by the General Assembly for two years.

Segregated (SG)The Segregated supply chain model maintains separation between
sustainable palm oil from different certified sources and ordinary
palm oil throughout supply chain. The model assures that RSPO
certified oil palm products delivered to the end user come only fromRSPO certified sources.
Smallholders
Farmers growing oil palm on a plantation of less than 50 hectares.
Standing Committees
Committees that oversee RSPO’s overall operations, consistingof members from the BoG and RSPO members. Four Standing
Committees have been appointed to lead: Standards & Certification,
Trade & Traceability, Communications & Claims and Finance.
Supply chain associates
RSPO membership category consisting of companies that procure,use or trade less than 500 MT of CSPO annually. Supply chain
associates may attend the annual General Assembly as observers.
United Nations Sustainable Development Goals (SDGs)
A set of 17 aspirational global goals to end poverty, protect theplanet and ensure that all people enjoy peace and prosperity. The
goals build on the successes of the Millennium Development Goals,
while including new areas such as climate change, economic
inequality, innovation, sustainable consumption, peace and justice,among other priorities.

RSPO Complaints and Appeals Procedures (CAP)
RSPO procedures for dealing with complaints arising from a breachof the RSPO Key Documents, and appeals against the decision of
the Complaints Panel in relation to such Complaints.

1580

In line with the revision of the current RSPO P&C 2013, the Peatland Working Group 2 has revised the “RSPO’s organic and peat soil classification,” which isavailable at: www.rspo.org/principles-and-criteria-review/revision-of-rspo-organic-and-peat-soil-classification.

RSPO IMPACT REPORT 2018

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Sustainable Development Goals Icons. Retrieved from www.
un.org/sustainabledevelopment/news/communicationsmaterial/CONTACT RSPO
We value the feedback of our stakeholders.
If you have questions about this report or our impact, please contact:
Impacts and Evaluation Division
Roundtable on Sustainable Palm Oil (RSPO) Secretariat
Unit A-37-1, Menara UOA Bangsar
No.5 Jalan Bangsar Utama 1
59000 Kuala Lumpur
T: +603 2302 1500
E: rspo@rspo.org
www.rspo.org

RSPO IMPACT REPORT 201883

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RSPO IMPACT REPORT 2018

Impacts and Evaluation Division